British Airways to make further losses, hints at job cuts

Font Size

Print

Feedback

Email

Discuss

• Discount UK Shopping

Related Articles

Asia Pacific region overtakes US in air travel2009: Worst demand decline in aviation historyBritish Airways faces fresh strike threat

London: British Airways warned on Thursday it expected an operating loss on a par with the £150 million million shortfall predicted for the year just ending and hinted that job losses may be on the cards.

The airline said that for its 2009/2010 business year, starting in April, it expected a similar operating result to that forecast for the year to end-March. The airline warned in January it will post an operating loss of £150 million in the current business year, hit by the weak economy and declining sterling.

In another sign that job cuts may lie ahead, British Airways said it aimed to cut non-fuel costs by £220 million in the coming year with a further £80 million reduction seen for its 2010/2011 business year. It also said its profit projections for the year ahead did not include the impact of any severance costs.

The airline, which is grappling with a big fall in business travel as a result of the global financial crisis, said it expected revenue in the 12 months to March 2010 to fall 5% and for fuel costs to drop 10%. Passenger capacity over the coming summer was likely to be 2% below 2008 levels and capital expenditure next year is seen at £725 million, the company said.