27 January 2009

BA expects Ã&#pound;150m loss

British Airways expects to make an operating loss of Ã&#pound;150 million in the year to March.

This compares with an operating profit of Ã&#pound;875 million in the 2007-08 financial year.Ã~

The airline said further economic weakness in January and the outlook for February and March, combined with the fall in sterling, were impacting the outlook for end of the financial year.

Results for the third quarter to December 31 2008 are expected to show an operating loss of around Ã&#pound;50 million, which is after a Ã&#pound;56 million non-cash charge relating to the retranslation of certain foreign currency obligations, the airline said.

BA said costs were being impacted by foreign exchange.

Non-fuel costs are now expected to rise by 8% year on year compared to its previous guidance of 5%.

Fuel cost guidance is largely unchanged at around Ã&#pound;3 billion as the lower price of fuel is being offset by a lower fuel hedging benefit for the year and currency impacts.

Revenue guidance for the year remains unchanged as being up at least 4% year on year with yields benefiting from exchange more than offsetting volume declines.

Traffic volumes remain in line with the market, BA said.

Traffic statistics for January and third quarter results will be announced in February.

by PhilÃ~Davies

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• Jetwash Strikes Again!
  
  

  Staring at my CRS (as one does) I note that there are 11 flights a day (or so) Heathrow to Dubai (across all airlines). On the 29th Jan every ruddy one has availability in all classes - ie empty, more or less. Same story LHR to JFK - 17 flights - all available, all classes. I mean, I am not exactly a dynamic 30 something wizz kidd but if I was making naff all trundling empty aeroplanes around the planet, its not rocket science to work out that one could prune a few bits here and there - possibly one stonk of a lot here and there. And I am sure that the BAA, being the intelligent, eco-friendly outfit it is (LOL) will not half inch all whichever airlines' slots. Sorry, sorry, far too easy that one!! Who has the airline corporate brain cell, this week, anyway?

  By Murray Harrold, Tuesday, January 27, 2009