LONDON (Reuters) – Shares in British Airways owner IAG hit a two-month low on Monday after the company issued a clarification over the weekend in which it lowered its 2019 free cash flow guidance, dealers said.
At 1022 GMT, the stock was down 2.8 percent and the biggest loser on the FTSE 100.
IAG’s clarification covered a number of topics including capital expenditure and followed an earnings call with management last Thursday, Goodbody analysts and a trader said.
The airline said it expects equity free cash flow to fall this year due to operating profits being flat and an increase in capex to 2.6 billion-2.7 billion euros (2.2 billion pounds-2.3 billion pounds) from 2.2 billion euros in 2018, Goodbody analysts said.
(Reporting by Helen Reid and Alistair Smout; writing by Josephine Mason; editing by Jason Neely)