International Airlines Group (IAG) announced Friday it was lowering its annual earnings forecast after already cutting its prediction following the UK's pro-Brexit vote.

IAG said it now expected full-year operating profit of 2.5 billion euros ($2.73 billion). That's 7 percent higher compared with 2015, but down from the 10-percent increase the company predicted at the end of July.

Britain's vote to leave the European Union has triggered a plunge in the pound to 31-year lows against the dollar and 7.5-year troughs versus the euro.

'Negative impact'

The owner of British Airways, which is also in charge of Spanish carrier Iberia and Ireland's Aer Lingus, said its third-quarter was affected by "a very significant negative currency impact of 162 million euros."

IAG CEO Willie Walsh noted the group was grappling with sterling weakness and continued disruption as a result of air traffic control strikes.

A weaker pound makes it more expensive for Britons to travel abroad. Secondly, costs for dollar-denominated fuel purchases have gone up considerably.

Despite the current problems, IAG posted a 10-percent rise in net profit for the three months to the end of September year on year.

Low-budget airlines Ryanair and Easyjet had also lowered their earnings forecasts in the wake of the looming Brexit.

hg/jd (AFP, Reuters)