Russ Mould, investment director at AJ Bell, said: “For decades British Airways’ transatlantic routes have been a mainstay of the business so it’s not a surprise to see weakness in this area provoke a negative market reaction for parent company IAG.
“Passenger demand in Europe for flights to America has been affected by strict immigration controls under the Trump administration and a scaling back in corporate activity between the US and Europe.
“This contributed to a disappointing set of third-quarter results which saw the shares lose some altitude after a heady ascent over the last 12 months.
“On the plus side, IAG continues to believe it can navigate its way to its full-year guidance and it is seeing strong demand in the premium passenger segment.
“After a fairly untroubled flight for the stock to pre-pandemic levels, the latest update is a reminder that the seatbelt sign might still go on from time to time and shareholders have to be prepared for some turbulence along the way.”
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