BA's first H1 loss as revenue slumps
Friday, 6 November 2009 07:31British Airways today announced a loss of £292m for the six months to the end of September, compared with a £52m profit in the same period last year.
It is the first time that BA has recorded a first-half loss - this is normally a buoyant period for the airline as it includes the holiday season.
Revenue dropped 13.7% to £4.1 billion, while the airline cut its costs by 8.7%. Chief executive Willie Walsh said the aviation industry remained in recession. He said BA's revenue was likely to drop by £1 billion in its full financial year, so further cost cuts were 'essential'.
BA cut its workforce by 1,900 in the six-month period and reduced flights and routes on its summer schedule by 3.5%. Mr Walsh said the airline was cutting its winter capacity by 6% and would shed another 3,000 jobs by March next year.
BA said passenger revenue dropped 13.6% from the same period last year, as average fares fell 12.2%. The load factor, or percentage of seats filled, rose slightly to 80.6%.
