British Airways owner IAG shares fly lower after IT troubles as airline says full flight schedule will resume today

 
Rebecca Smith
BA flights were grounded over the bank holiday at Heathrow and Gatwick
BA flights were grounded over the bank holiday at Heathrow and Gatwick (Source: Getty)

Shares in British Airways owner IAG swooped to the bottom of the FTSE 100 at the open this morning, after a global IT outage caused bank holiday chaos for passengers.

A power failure on Saturday resulted in mass flight cancellations across London Heathrow and Gatwick airports, causing chaos for 75,000 passengers. The trouble is expected to land the airline a sky-high bill.

Read more: BA faces sky-high bill over IT nightmare as boss says he won't quit

Shares were down 3.34 per cent to 593.50p at the time of writing.

Today, BA said it is now operating a full flight schedule, saying: "Our IT systems are now back up and running and we will be operating a full flight schedule at Heathrow and Gatwick."

It has though warned long-suffering passengers that it "may take some time" to reunite them with their bags.

Yesterday, chief executive Alex Cruz told the BBC a power surge was the reason for the disruption and promised an exhaustive investigation would get underway to determine why the back-up didn't work and why there was such chaos.

Cruz has said he won't be resigning over the trouble and said the airline will "make sure it doesn't happen again".

Analysts though, have noted the airline will be counting the cost, including to the carrier's reputation.

Independent aviation analyst Howard Wheeldon said: "While the cost of reputational damage to British Airways is incalculable at this stage it will be considerable. I suspect that the minimal cost of recovery and claims costs will be in excess of £120 million. Adding both together, we could be talking double that amount."

Robin Byde, an analyst at Cantor Fitzgerald, said the hit could run to £100m accounting for “compensation, refunds or rebooked flights, additional staffing and related costs, system recovery costs, and passengers choosing another carrier”.

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