BA Losses Not As Heavy As Feared
British Airways has come through the last financial quarter better than expected, reporting a £50m loss before tax.
The airline is still dealing with the ongoing threat of strike action and declining passenger numbers, but the relatively light losses are a positive step for the comany.
BA announced a deficit of £342m during the first nine months of the carrier’s financial year. However, a loss of £151m was initially forecast for the final three months of last year. Instead, the airline reported an operating profit of £25m for the quarter, when tax, pension costs and interest were taken out of the equation.
This profit has been put down to the airline’s cost-cutting plan, the same plan that has caused unrest with the Unite union and has led to the proposed strike action. The plan has already led to 1,200 job cuts.
Chief executive, Willie Walsh said: “These results highlight the impact of permanent changes across the company on our costs. Those changes, combined with capacity reductions and external spending cuts, mean operating costs are down by 10.5% and show that we've adapted quickly to the new business realities created by the global recession.”
British Airways await the result of the latest Unite ballot on 22 February which will decide whether a second strike will go ahead in March. Some 12,000 cabin crew members are tied up in the ballot. The strike could cause severe flight disruption over the Easter Holidays.
Mr Walsh concluded that the airline, although operating above expectations, is expecting record losses this year.
Travel Industry news posted by Marilyn on 05 February 2010
Destinations:
Balearics |
Canary Islands |
Egypt |
Red Sea |
Greece |
Majorca |
Spain |
Turkey |
Ibiza |
Tenerife
Holiday Hypermarket is a trading name of TUI Travel PLC. Registered office: TUI Travel House, Crawley Business Quarter, Fleming Way, Crawley, West Sussex, RH10 9QL.
Company Number: 6072876
