×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

British Airways to make further losses, hints at job cuts

British Airways to make further losses, hints at job cuts
Comment E-mail Print Share
First Published: Thu, Mar 05 2009. 03 09 PM IST
Updated: Thu, Mar 05 2009. 03 09 PM IST
London: British Airways warned on Thursday it expected an operating loss on a par with the £150 million ($212.1 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 would post an operating loss of £150 million in the current fiscal 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 ($311 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.
Shares in British Airways were down 1.8% at 133 pence by 0843 GMT, underperforming a 1.1% drop for the FTSE 100 Index.
Comment E-mail Print Share
First Published: Thu, Mar 05 2009. 03 09 PM IST
More Topics: British Airways | BA | Aviation | Loss | Corporate News |