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BA posts record £401m loss
BA reported a loss before tax of £401m for the year to 31 March, after seeing its results hit by a weak pound and higher fuel costs.
Published: 22 May 2009
BA reported a loss before tax of £401m for the year to 31 March, after seeing its results hit by a weak pound and higher fuel costs.
BA has announced the biggest loss since the company was privatised in 1987.
The airline said it had an operating loss of £220 million for the period, reversing year-earlier operating profit of £878 million, and a pre-tax loss of £401 million, compared with a pre-tax profit of £922 million.
Revenue rose to £8.99 billion from £8.76 billion.
“Reduced passenger and cargo demand and high fuel prices last summer contributed to our 220 million pounds operating loss as our total fuel bill reached almost three billion pounds,” chief executive Willie Walsh said.
“The prolonged nature of the global downturn makes this the harshest trading environment we have ever faced and, with no immediate improvement visible, market conditions remain challenging,” Walsh said in a statement.
The airline plans to reduce capacity by four percent over the winter by parking up to 16 aircraft. But the airline also said it expected lower fuel prices to reduce its fuel costs by about £400m in the year ahead.
Walsh also criticised the UK government’s decision to double air passenger duty from next year.
“[It] will undoubtedly disadvantage the UK’s competitive position within the airline industry,” he said.
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