Troubled BA sees losses mount
BRITISH AIRWAYS faces severe headwinds in February, starting this week when it reveals new losses for the third quarter.
Next month will also see the result of a new ballot from disgruntled cabin crew, a Us regulatory decision on its proposed tie up with American Airlines and news on how it proposes to narrow its pension deficit. the outcome of the pension review could affect its proposed merger with Iberia.
Analysts forecast an operating loss of £88 million for the quarter, taking the total red ink for the nine months to December 2009 to £199 million, against an £89 million profit in the first nine months of 2008.
Losses before tax are estimated at £151 million for the quarter and £443 million for the full nine-month period. revenue is expected to come in at just over £2 billion for the third quarter.
BA’s passenger traffic has been severely hit by the recession, leading chief executive Willie Walsh to say that the airline is engaged in a fight for survival. the flag carrier is on course for its second consecutive annual loss for the first time.
Walsh is trying to bring in cost-saving changes to working practices but has met resistance from cabin crew. the result of the latest cabin-crew ballot is expected on February 24.