30/07/2010

BA Lose Millions To Strikes And Volcano

British Airways have announced a pre-tax loss of £164 million for the three months to June 30.

The combination of the ongoing industrial action by cabin crew and the disruption caused by volcanic ash cost the airline around £250 million during the quarter.

BA cabin crew have taken strike action on 22 days since March - with 15 of those falling in this quarter.

The long-running dispute was initially focused on changes to staff levels, pay and working conditions, but it has been further fuelled by the airline's decision to remove travel perks from some of those who went on strike and disciplinary action taken against some employees.

The Unite union recently rejected BA's latest offer in the dispute, raising fears that more strikes could take place.

The disruption caused by Iceland's volcanic ash cloud also resulted in UK airspace being closed for six days in April.

However, BA Chief Executive Willie Walsh said that the airline was "continuing to target to break even at a profit before tax level for the full year".

(KMcA/GK)

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