International Consolidated Airlines Group (ICAGY) , the owner of British Airways and Spain's Iberia, cut its long-term capital expenditure and profit targets Friday amid weakening global demand.
IAG lowered its Ebitdar (earnings before interest, taxed, depreciation, amortization and restructuring) to €5.3 billion ($6.22 billion) a year from €5.6 billion a year as it set out its long-term planning goals for 2016 to 2020 in a trading statement.
Shares in the company fell 2.77% in early London trading to change hands at 438 pence, extending the year-to-date decline to 28%.
The company it also looking to cut its capital expenditure, setting a new target of €1.5 billion a year from the previous goal of €2.5 billion.
IAG also downgraded its capacity outlook, cutting its growth target for available seat kilometres (ASK) to 3% from a goal of 3% to 4% a year.
Last week, the airline operator announced it anticipated operating profit of €2.5 billion for 2016, up 7% from 2015. IAG had previously thought growth would be in the double digit area but downgraded after the U.K.'s vote to leave the European Union.
The company reports in euros but makes a significant portion of its profits in pounds and has been badly impacted by the fall in the British currency since June 23.
The airline group, which is often referred to a pension fund with an airline attached, agreed last month to pay agreed to £300 million ($373.9 million) a year for 2027 into the fund to fill its £2.8 billion pension deficit.