Published by Global Banking & Finance Review®
Posted on March 21, 2025
1 min readLast updated: January 24, 2026
Add as preferred source on GoogleIAG shares dropped 2.7% as Heathrow closed due to a power outage, affecting British Airways flights. Compensation costs are expected to impact future earnings.
LONDON (Reuters) - Shares in British Airways parent IAG fell on Friday after Heathrow Airport said it would be closed for the whole day after a fire at a nearby electrical substation wiped out power, disrupting flight schedules.
British Airways itself had 341 flights scheduled to land at Heathrow on Friday.
"Compensation is likely to be the largest immediate cost," said Jefferies analysts in a note, estimating that this could equate to 1-3% of group 2025 EBIT (earnings before interest and tax).
By 0801 GMT, IAG shares were down 2.7% at 282.11 pence.
Shares in other airlines were down as well, with Germany's Lufthansa, which also operates flights out of Heathrow, down 1.1%.
(Reporting by Samuel Indyk; Editing by Amanda Cooper)
The main topic is the decline in IAG shares following the closure of Heathrow Airport due to a power outage.
British Airways had 341 flights scheduled to land at Heathrow on the day of the closure.
Heathrow was closed due to a fire at a nearby electrical substation that caused a power outage.
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