Menu
31/07/2009
BA Flies Into Financial Turbulence
The UK flag-carrier, British Airways has today stunned the financial markets by reporting a pre-tax loss of £148m ($245m) in the three months to the end of June.
The news is made worse when compared with a profit of £37m in the same period last year.
Its operating loss of £94m compares with a profit of £35m last year.
However, its losses come in the middle of a tough year for airlines as passengers cut back spending in the recession.
"Trading conditions continue to be very challenging," Willie Walsh, the airline's Chief Executive said.
"While traffic volumes are down considerably compared to last year, they have stabilised during the quarter and show some signs of improvement for the peak summer months," he added.
Passenger revenue fell 12.5% while the worldwide decline for airfreight has also hit its cargo business, where revenues were down 28.1%.
In June, airline bosses asked thousands of staff to work for free for up to one month to keep the airline in business.
The airline had already cut staff by 1,450 since the end of March through "reduced overtime, increased part time working and targeted voluntary redundancy", he said.
Meanwhile, negotiations continue with unions representing cabin crew and ground staff.
Painting a positive picture in grim times, Mr Walsh insisted: "Total operating costs are down 6.6%, but "with revenue still weak, there is much more to be done."
Also, while trading conditions remain difficult for BA and other airlines, the company will be helped by easing fuel prices.
BA's fuel bill was expected to be between £450m and £500m lower this year than last year.
(BMcC/KMcA)
The news is made worse when compared with a profit of £37m in the same period last year.
Its operating loss of £94m compares with a profit of £35m last year.
However, its losses come in the middle of a tough year for airlines as passengers cut back spending in the recession.
"Trading conditions continue to be very challenging," Willie Walsh, the airline's Chief Executive said.
"While traffic volumes are down considerably compared to last year, they have stabilised during the quarter and show some signs of improvement for the peak summer months," he added.
Passenger revenue fell 12.5% while the worldwide decline for airfreight has also hit its cargo business, where revenues were down 28.1%.
In June, airline bosses asked thousands of staff to work for free for up to one month to keep the airline in business.
The airline had already cut staff by 1,450 since the end of March through "reduced overtime, increased part time working and targeted voluntary redundancy", he said.
Meanwhile, negotiations continue with unions representing cabin crew and ground staff.
Painting a positive picture in grim times, Mr Walsh insisted: "Total operating costs are down 6.6%, but "with revenue still weak, there is much more to be done."
Also, while trading conditions remain difficult for BA and other airlines, the company will be helped by easing fuel prices.
BA's fuel bill was expected to be between £450m and £500m lower this year than last year.
(BMcC/KMcA)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
14 June 2010
CIPR Journalism Awards In Full
Deric Henderson of the Press Association has been awarded the Journalist of the Year title The Belfast Telegraph lifted the title for Coca-Cola CIPR Newspaper of the Year, and the BBC's Spotlight Programme won the Coca-Cola CIPR Scoop of the Year and the Coca-Cola CIPR Current Affairs Programme of the Year for its Irish Robinson Investigation.
CIPR Journalism Awards In Full
Deric Henderson of the Press Association has been awarded the Journalist of the Year title The Belfast Telegraph lifted the title for Coca-Cola CIPR Newspaper of the Year, and the BBC's Spotlight Programme won the Coca-Cola CIPR Scoop of the Year and the Coca-Cola CIPR Current Affairs Programme of the Year for its Irish Robinson Investigation.
20 April 2004
Good year for Tesco as profits top £1.6bn
It has been a good year for the supermarket retailer Tesco which has seen pre-tax profits soar to £1.6 billion, according to the group's full-year preliminary statement issued today. In addition to driving up pre-tax margins by 17.6%, the company said that it had slashed its debts by £600 million, down to £4.1 billion. In the UK, sales grew by 14.
Good year for Tesco as profits top £1.6bn
It has been a good year for the supermarket retailer Tesco which has seen pre-tax profits soar to £1.6 billion, according to the group's full-year preliminary statement issued today. In addition to driving up pre-tax margins by 17.6%, the company said that it had slashed its debts by £600 million, down to £4.1 billion. In the UK, sales grew by 14.
10 October 2001
Aer Lingus staff told of serious threat to company
Aer Lingus management have sent a letter to staff indicating that the company’s viability is under the most serious threat ever encountered. The Chief Executive of Aer Lingus, Larry Stanley, told staff that the losses faced by the company were “truly staggering”.
Aer Lingus staff told of serious threat to company
Aer Lingus management have sent a letter to staff indicating that the company’s viability is under the most serious threat ever encountered. The Chief Executive of Aer Lingus, Larry Stanley, told staff that the losses faced by the company were “truly staggering”.
06 August 2001
British Airways perform to expectations
British Airways have announced a pre-tax profit of £40 million compared to a loss of £50 million in the same quarter last year, for the three months to June. The upsurge in profits was boosted by the £100 million profit British Airways made when it sold its no-frills airline Go in June this year.
British Airways perform to expectations
British Airways have announced a pre-tax profit of £40 million compared to a loss of £50 million in the same quarter last year, for the three months to June. The upsurge in profits was boosted by the £100 million profit British Airways made when it sold its no-frills airline Go in June this year.
06 November 2001
BA announce first profit loss since privatisation
British Airways has announced profits of only £5 million for the second quarter of the financial year, representing a drop of 98 per cent on the figure for the same period last year.
BA announce first profit loss since privatisation
British Airways has announced profits of only £5 million for the second quarter of the financial year, representing a drop of 98 per cent on the figure for the same period last year.
-
Northern Ireland WeatherThis Evening and Tonight:This evening will be cloudy with outbreaks of rain, these clearing away towards midnight. Then the rest of the night will be dry with clear periods. Minimum temperature 12 °C.
