BA owner IAG warns on profit after Brexit vote

British Airways' new Airbus A380 arrives at a hanger after landing at Heathrow airport in London July 4, 2013. REUTERS/Paul Hackett/File Photo - RTX2C595

LONDON (Reuters) - British Airways owner International Consolidated Airlines Group ICAG.L warned on profit on Friday, blaming a weaker than expected trading environment in the run up to the referendum that saw Britain vote to leave the European Union.

“Following the outcome of the referendum, and given current market volatility, while IAG continues to expect a significant increase in operating profit this year, it no longer expects to generate an absolute operating profit increase similar to 2015,” it said.

IAG said Britain’s decision to leave the EU will not have a long-term material impact on its business.

The firm said it would update the market in due course.

Shares in IAG were down 19.9 percent at 423 pence at 1020 BST.

Reporting by James Davey, editing by Paul Sandle