Crew Cuts from BA to Bounce Back from Record Loss
If the Chief Executive Officer Willie Walsh wins his 15-month tussle over cabin crew expenses and business travel keep improving, then British Airways will break even this year, rebounding from a record loss.
The British Airways seeks to recommence negotiations with the Unite union tonight in an attempt to head off three weeks of strikes by 12,000 flights attendants that start on May 24. Whereas Iceland’s volcanic ash is also weighing on earnings, a bounce back in demand and cost savings that summed up about 1 billion pounds last year should facilitate to eliminate losses in fiscal 2011.
“A return to profit requires permanent change across the Company,” Walsh said today after the London-based company’s net loss widened to 425 million pounds ($613 million) in the year ended March 31 from 358 million pounds a year earlier. British Airways was operating up 0.3 percent at 187 pence as of 9:57 a. m. in London after earlier gaining 2.8 percent.
This year the stock is almost unchanged, charging the Company at 2.16 billion pounds, after falling 3.2 percent the day before, when the Court of Appeal ruled that Unite could go ahead with extra strike action following seven days of work to rule in March that price the carrier 43 million pounds.
Although sales dropped 11 % last year to 7.99 billion pounds, fuel costs were 597 million pounds lesser and the Company cut other expenses by 397 million pounds as it condensed capacity and renegotiated agreements with pilots and ground staff. And according to the analysts the net loss was lower than the 470 million pounds.
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