BA losses blamed on strikes & ash

British Airways (BA) reported a net loss of £122million (€147 million) for its first quarter of 2010, increasing on the £106 million deficit for the same period last year.

Oneworld image

The airline said that “disruption” costs of £250 million during April through to June consisted of £108 million due to volcanic ash airspace closures and £142 million from the still unresolved cabin crew strikes.
Chief Executive Officer Willie Walsh was robust in his comments: “We’ve improved our underlying revenue performance in the quarter with increased yields and lower costs. We must continue to lower costs as revenue grows. Introducing permanent structural change across the airline remains our priority.
Operating costs were down 3.3% to £2 billion with reduced fuel costs helping, but passenger capacity was down by over 11%. BA says that without the disruptions passenger revenue would have increased by “some 11%”.