BA plunges to record loss

Fri Nov 6 2009 12:34:30

British Airways has announced a record pre-tax loss of £292 million for the six months to the end of September.

The airline, which lost £401 million in its previous financial year, said total revenues slumped by almost 14 per cent in the period.

It is the first time that BA has recorded a first half loss - normally a buoyant period for the airline as it includes the holiday season.

The deficit is around £40 million higher than City analysts had been expecting.

The industry as a whole is expected to lose £6.65 billion this year as a result of the recession's impact on passenger numbers and demand for business class travel.

Willie Walsh, BA's chief executive, said the company reduced costs by some £400 million after manpower was cut by 1,900 roles through reduced overtime, increased part-time working and voluntary redundancy.

But BA is locked in a fight with unions over its plans for job cuts and a pay freeze and has faced the threat of industrial action from different sections of its workforce.

Unite launched legal action in the High Court on Thursday in a bid to stop the imposition of revised contracts for new cabin crew. It has agreed to work to the new schedule until the outcome of the legal action is known.

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