British Airways has announced an operating loss of £111 million and deferral of its A380s.
November 6: In its half-year report, British Airways announced an operating loss of £111 million, compared with a profit of £140 million for the same period last year.
British Airways’ chief executive Willie Walsh said “Aviation remains in recession with the International Air Transport Association (IATA) predicting that the industry will lose $11 billion this year. We were quick to respond to the crisis by taking out excess capacity and, at the same time, driving down unit costs by 5.2%. It’s imperative we continue to deliver on our plans to reduce costs further in the second half. With revenue likely to be £1 billion lower this year, we can’t stand still and further cost reduction is essential.
“We will introduce further structural change in the second half to secure the long-term future for our business. We are cutting winter capacity by 6%, making further manpower reductions of 3,000 by March 2010 and permanent changes to the way we run our business.”
The airline confirmed it has agreed a deferred schedule for deliveries of its A380s with Airbus. The first will arrive in 2013 and the last in 2016.