BA opens talks with unions over pay and productivity
The airline industry continues to face “very difficult” trading conditions on the back of a weak economic environment, British Airways warned today.
BA made a pre-tax loss of £70 million for the nine months ending December 31 against a profit of £816 million for the same period the previous year.
The decline was due to the weak economy and fall in the value of sterling.
BA continues to predict an operating loss of around £150 million for the financial year.
“Our efforts are focused on continuing to improve the customer experience and the profitability of the business during very difficult trading conditions,” the airline said.
“The current weak economic environment drives a need for significant cost reduction, as revenue growth will be difficult. In the period we completed a management restructuring and associated voluntary severance programme.
“We have opened discussions with the trade unions about pay and productivity, which is required to improve the financial performance of the company.”
Chief executive Willie Walsh said: “These results have been hit by further economic weakness and the fall in sterling. This has resulted in an operating profit of £89 million.
“Revenue up 6.2 per cent received significant support from currency which more than offset volume declines.
“Costs were up by more than £1 billion in the period at £7 billion reflecting the significantly increased fuel costs and the impact of weak sterling. Fuel costs were up almost 50% at £2.2 billion. Non-fuel costs rose by £335 million to £4.7 billion.
“We have already taken several actions to offset the unprecedented economic conditions.
“We have increased our sales activity in markets with stronger foreign currencies to benefit from exchange and continue to offer competitive fares in both premium and non-premium cabins.
“We continue to review every aspect of the business to control costs while at the same time improving the customer experience and operation.”
The airline revealed that it had finalised the design and certification of our new first class cabin which will appear on the long haul fleet later this year. It will also be introduced to new Boeing 777-300s for delivery in 2010.
The airline’s new Club World cabin has been fitted on 19 out of 42 Boeing 777s in addition to all 57 Boeing 747s with all aircraft to be completed by the end of the year.
A new cabin configuration will guarantee Club Europe passengers a window or aisle seat from February 23. The new configuration will see the removal of the use of the middle seat in the short haul business class cabin.
More than 17 million customers have travelled through Heathrow Terminal 5 since it opened last year.
“Customer feedback continues to be excellent with record breaking scores in our own monthly customer survey,” BA said.
by Phil Davies
Phil Davies
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports