British Airways reports £292m six-month loss
British Airways' chief executive Willie Walsh has said "Aviation remains in recession"
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Friday, 06, Nov 2009 09:44
By Sarah Garrod.
British Airways (BA) has recorded a loss of £292 million before tax for the six months to September.
The airline, which has been badly hit by the recession, said the figures represent the first time it has reported a loss for the first half of the financial year.
The interim management report for the six months to September 30th showed operating losses of £111 million, compared to £140 million profit last year, with revenue down 13.7 per cent and total operating costs down 8.7 per cent.
British Airways' chief executive Willie Walsh, said: "Aviation remains in recession with IATA predicting that the industry will lose $11 billion (£6.62 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 per cent.
"This demonstrates how well our costs have been managed in the first half and 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."
The airline is currently battling with unions over the implementation of a pay freeze and job cuts. Cabin crew are the first to be affected, with their numbers being reduced on long-haul flights.
The union Unite has said it will continue with strike ballot action over the changes, seeking a high court injunction to have them blocked.
A statement from the union declared: "Unite is taking its legal challenge to prevent BA from imposing, without agreement, widespread contractual changes upon the cabin crew. BA is seeking to impose these changes, which Unite has described as "unfair and unworkable", from November 16th, 2009."