Brexit - Potential impacts on BA?

Old Jun 24, 16, 12:35 am
  #76  
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Originally Posted by GentleGiant View Post
The leave people now want to wait several years. So goodness knows.
Ah, no please. No more holding the EU hostage by the UK. Invoke article 50 next Monday please. You made your bed, no fly in it.
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Old Jun 24, 16, 12:36 am
  #77  
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I'm having a financial celebration due to the GBP plummet against the USD here today.

About LHR, I just hope this doesn't eventually mean (more) EU passport users using the fast track border control lines at T5 and slowing me down when coming in.
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Old Jun 24, 16, 12:39 am
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Short term (next year or so), I expect nothing will change apart from it looks like sterling will settle 10-20% less against the dollar. This will mean larger costs for BA, as many costs (fuel, planes, leases) are paid in dollars or euros (though these costs are offset by increased earnings from passengers paying in foreign currency).

I wouldn't expect any immediate changes to routes or operations. Perhaps we will see another cost cutting drive in the next year or so, as BA looks to maintain their profit margin.

Medium term (2-5 years) I would expect less growth at BA, given the uncertainty of legal framework (particularly route authorities), increased inflation, uncertainty from visitors to the UK and potential recession.

For UK flyertalkers, anyone considering booking an exEU has just seen a significant price rise (along with anyone travelling from the UK and paying in sterling.

Ultimately, it's all a bit of a guesstimate at the moment. Above are my guesses - don't hold me to them!
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Old Jun 24, 16, 1:32 am
  #79  
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Originally Posted by fransknorge View Post
Also is a shopping trip to London next week-end a good idea ?
I'm booked to fly to London Monday. However I think the pound will have recovered a bit by the time I land.

The only bad news is that all the people who predicted the end of the world can keep on grumbling for a couple more years before anything serious changes. So two years of miserable people in London. That combined with an England loss to Iceland will seal the depression.

I'm going to try to convince my London office to move up-country so all can have a happier life.
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Old Jun 24, 16, 1:41 am
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I guess this is just the way the winds are blowing eh?



Welcome to our new leaders.
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Old Jun 24, 16, 1:49 am
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Originally Posted by Nepasser View Post
...it seems Visa calculates the exchange rate when it posts so it doesn't make sense to cancel, right?
Hold on to your reservation and please report back when the charge becomes apparent to you, i.e. whether the exchange rate of the date of purchase or the date of posting to your account is used. I think it is the latter.
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Old Jun 24, 16, 1:53 am
  #82  
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I wonder what impact BA might get in delivering on all those ~$2000 First tickets they sold ex-US a few months ago?
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Old Jun 24, 16, 2:08 am
  #83  
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I see the IAG share price has taken a bit of a battering. According to the BBC, it is currently down ~15%, from the charts it seems to have recovered from an initial ~33% price drop shortly after markets opened. Clearly the markets seem to think this will not be good for BA. Let's see where it settles.
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Old Jun 24, 16, 2:15 am
  #84  
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Moderator Note

Just a reminder that this is the BA forum and we're discussing

Brexit - Potential impacts on BA?

Anyone wishing to discuss the wider political and economic implications of the Brexit decision is encouraged to visit the threads already active in OMNI PR.

Thank you for your cooperation.

Moderator team.
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Old Jun 24, 16, 2:22 am
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I think it's safe to say there now won't be a decision on a third runway at LHR this summer.
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Old Jun 24, 16, 2:25 am
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Originally Posted by ian001 View Post
I think it's safe to say there now won't be a decision on a third runway at LHR this summer.
I see it differently. I see a third runway, Cameron has no reason not to.

Last edited by Prospero; Jun 24, 16 at 3:41 am Reason: Remove content better suited to OMNI
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Old Jun 24, 16, 2:26 am
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Originally Posted by ian001 View Post
I think it's safe to say there now won't be a decision on a third runway at LHR this summer.
I think now is a very good time to actually just go ahead and announce it. It will say "We are Still open for Business". BA would then need to order a few more planes..
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Old Jun 24, 16, 2:30 am
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Originally Posted by Oxon Flyer View Post
Anyone wishing to discuss the wider political and economic implications of the Brexit decision is encouraged to visit the threads already active in OMNI PR.

Thank you for your cooperation.

Moderator team.
Except that there they manage to make the Brexit about Obama and Trump... There is something to be said for a little leeway on the BAEC forum this time, maybe...
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Old Jun 24, 16, 2:46 am
  #89  
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If the City looses most of its businesses due to the Brexit, then BA has a serious problem getting premium traffic in C&F out of their LHR hub post 2018-19. Till then the primary short term problem is the GBP/$ exchange rate, but I'm certain they have hedged that along with fuel.
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Old Jun 24, 16, 2:59 am
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Headline just through:

IAG no longer sees absolute operating profit increase in FY like 2015
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