British Airways Forecasts £1 Billion Loss
Natalie Cooper August 25th, 2009 Airline News
Britain’s flag carrier British Airways has forecasted a £1 billion drop in sales if the current trends continue as it did in the first quarter this year.
“There is no quick fix in sight for us,” Chief Financial Officer Keith Williams said in the carrier’s weekly staff newsletter. “It is likely that recovery in the U.K. and the U.S. will take some time.”
Sales dropped in the first quarter this year by 12 percent to £1.98 billion along with traffic by 3.2 percent. The airline has delayed delivery of new jets, cut back service on flights and plans to make 4,000 jobs redundant.
However the revenue per passenger is most likely to be better than most other carriers based on industry figures, Chief Executive Officer Willie Walsh said in a BA newsletter. Premium class travel fell by 41 percent around the globe in the second quarter, which is likely to hurt airlines as they bring in most revenue for airlines.
Williams said the airline’s recovery would most likely lag behind the rest of the industry as the company needs more cash to see it through the downturn.
Walsh said last month that the company had raised $1 billion in funds to improve cash reserves.
Thanks to Bloomberg for the above quotes and figures. For more information on this article visit their website.
Natalie Cooper August 25th, 2009 Airline News
Britain’s flag carrier British Airways has forecasted a £1 billion drop in sales if the current trends continue as it did in the first quarter this year.
“There is no quick fix in sight for us,” Chief Financial Officer Keith Williams said in the carrier’s weekly staff newsletter. “It is likely that recovery in the U.K. and the U.S. will take some time.”
Sales dropped in the first quarter this year by 12 percent to £1.98 billion along with traffic by 3.2 percent. The airline has delayed delivery of new jets, cut back service on flights and plans to make 4,000 jobs redundant.
However the revenue per passenger is most likely to be better than most other carriers based on industry figures, Chief Executive Officer Willie Walsh said in a BA newsletter. Premium class travel fell by 41 percent around the globe in the second quarter, which is likely to hurt airlines as they bring in most revenue for airlines.
Williams said the airline’s recovery would most likely lag behind the rest of the industry as the company needs more cash to see it through the downturn.
Walsh said last month that the company had raised $1 billion in funds to improve cash reserves.
Thanks to Bloomberg for the above quotes and figures. For more information on this article visit their website.
