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British Airways announces first ever summer loss
06.11.09
British Airways remained deep in the red today after it announced a record pre-tax loss of £292 million for the six months to the end of September.
The airline, which recorded a loss of £401 million in its previous financial year, said total revenues slumped by almost 14% in the period.
It is the first time that BA has recorded a first half loss - normally a buoyant period for the airline as it includes the holiday season.
Today's deficit is around £40 million higher than City analysts had been expecting. Even when items such as pension costs are excluded BA made a loss of £111 million, against a profit of £140 million a year earlier.
The industry as a whole is expected to lose 11 billion US dollars (£6.65 billion) this year as a result of the recession's impact on passenger numbers and demand for business class travel.
Willie Walsh, chief executive, said the company reduced costs by some £400 million after manpower was cut by 1,900 roles through reduced overtime, increased part-time working and voluntary redundancy.
"With revenue likely to be £1 billion lower this year, we can't stand still and further cost reduction is essential," he said.
