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British Airways hit by £292m loss | British Airways hit by £292m loss |
(30 minutes later) | |
British Airways has reported a loss before tax of £292m ($485m) for the six months to the end of September, as the recession continues to hit airlines. | British Airways has reported a loss before tax of £292m ($485m) for the six months to the end of September, as the recession continues to hit airlines. |
It is the first time BA has reported a loss in the first half of its financial year. Last year it reported a profit of £52m for the same period. | It is the first time BA has reported a loss in the first half of its financial year. Last year it reported a profit of £52m for the same period. |
BA said revenue over the six-month period was down 13.7%. | BA said revenue over the six-month period was down 13.7%. |
"Aviation remains in recession with revenue likely to be £1bn lower this year," said BA chief Willie Walsh. | "Aviation remains in recession with revenue likely to be £1bn lower this year," said BA chief Willie Walsh. |
He told the BBC that this had been the "most difficult year in the history of British Airways". | He told the BBC that this had been the "most difficult year in the history of British Airways". |
"All airlines are facing the same pressure. Operational changes at British Airways are absolutely necessary to improve the performance of the business, " he said. | "All airlines are facing the same pressure. Operational changes at British Airways are absolutely necessary to improve the performance of the business, " he said. |
'Fragility' | 'Fragility' |
BA is currently in a battle with unions over changes to jobs and pay. It wants to cut the number of cabin crew staff on its long-haul flights from 15 to 14, with the change coming into effect on 16 November. | |
The company is also proposing a two-year pay freeze. It says the changes are essential to its survival. | |
On Thursday, the Unite union said it would continue with a strike ballot of British Airways cabin staff over the changes, despite its legal challenge to the new working patterns being delayed. | |
Unite had sought a High Court injunction to have the changes blocked, but the full trial will now not go ahead until 1 February. | |
Unite said staff would "unwillingly" work the new schedules from this month, but it would still ballot for a strike. The result of the strike vote will be known on 14 December. | |
Analysts said the latest figures could be used as ammunition by the union. | |
"These weak results will underscore their fragility to unions opposed to wholesale restructuring that is required if BA aims to survive this downturn," said Saj Ahmad from Gerson Lehrman Group. | "These weak results will underscore their fragility to unions opposed to wholesale restructuring that is required if BA aims to survive this downturn," said Saj Ahmad from Gerson Lehrman Group. |