IAG lowers expectations for increase in operating profits in 2016

In the long-term, IAG did not expect the UK's decision to have a "material" impact on the business but it no longer expected to register an increase in operating profits in 2016 similar to the previous year's, the company said in a statement.

The company explained that it had seen a weaker than expected trading environment in the run-up to the UK referendum and was going through a period of volatility in the market.

Nonetheless, it continued to expect a "significant" increase in operating profits in 2016.