British Airways has become the latest airline to announce that it is cutting capacity on its flights as a result of Brexit.

Announcing 2016’s half-year results, Willie Walsh, Chief Executive Officer of IAG - which owns and operates BA, Iberia and Aer Lingus - revealed that the group has reduced its planned capacity growth for the second half of the year, and has 2017’s capacity growth and capex under review.

This is down to weaker-than-expected profits in the first half of 2016, as a result of Britain’s vote to leave the EU, as well as the threat of terrorism, the weakened pound, and industrial action from air traffic control.

The group reported underlying profits of €555 million after deducting exceptional items such as employee costs and fuel charges, which is an improvement on the €530 million from 2015’s half-year but fell short of forecasts.

In the first six months of the year, IAG’s airlines shifted a total of 46.6 million passengers, 20.8 per cent more than in the first half of 2015, resulting a 4.3 per cent rise in passenger revenue.

Mr Walsh commented: “We have continued to experience a weaker trading environment in our UK point-of-sale business, which represents around one third of total revenue.

“On top of this, continued pound sterling weakness would reduce pound sterling profits when translated into euros in what is traditionally the most profitable part of the year.”

IAG expects to report weaker full-year profits for 2016, compared to the year before, but doesn’t expect the Brexit vote to have a long-term impact on profits.