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British Airways makes £148m loss | British Airways makes £148m loss |
(10 minutes later) | |
British Airways has reported a pre-tax loss of £148m ($245m) in the three months to the end of June. | |
This compares with a profit of £37m in the same period last year. Its operating loss of £94m compares with a profit of £35m last year. | This compares with a profit of £37m in the same period last year. Its operating loss of £94m compares with a profit of £35m last year. |
Its losses come in the middle of a tough year for airlines as passengers cut back spending in the recession. | 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. | |
Staff cuts | |
British Airways has had to deal with falling traffic numbers and possible industrial action. | British Airways has had to deal with falling traffic numbers and possible industrial action. |
BA has faced possible industrial action over its efforts to cut costs and staffing numbers. The chief executive has previously said that its drive to save cash was part of a "fight for survival". In June, he asked thousands of staff to work for free for up to one month to keep the airline in business. | |
The airline has reduced manpower by 1,450 since March 31, 2009 through "reduced overtime, increased part time working and targeted voluntary redundancy," he said. | |
A "permanent structural change" to its employee cost base "is essential to our short-term survival and long term viability", Mr Walsh said. | |
The airline should meet its cost cutting targets, he said. | |
"Our engineers and pilots have voted for permanent change. This is a great step forward. Talks with other union groups continue. We're cutting forecast capital expenditure by 20% this year from £725m to £580m, and it's likely to remain at the same level this year," he added. |