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British Airways announces first ever summer loss
6 Nov 2009British 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.
Reader views (1)
With salaries of 67 000 per month,plus bonuses and perks im not surprised.Budget airlines like BA can not afford such unrealistic pay packages.
- Dave, london, 06/11/2009 07:35
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