Smaller loss at BA on cost cutting
05.02.10
BA announced a smaller than expected loss today for its third quarter, as the benefits of cost cutting programs began to bear fruit. The airline had a pre-tax loss of £50m in the three months to December 2009, down from the £122m in 2008 and much smaller than many analysts had expected.
BA's pre-tax loss in the nine months to the end of December was £342m, up from £70m in the same period in 2008. However, analysts had predicted the airline would announce a loss of £151m for the third quarter, taking its loss for the nine months to £443m.
Willie Walsh, the airline's chief executive, said the better than expected figures were the result of of cost-cutting measures across the company. He said: 'Operating costs are down by 10.5% and show that we've adapted quickly to the global recession. We still expect to make record losses this year. Permanent structural change is being introduced in all areas and this will return us to sustained profitability.'
Mr Walsh also revealed that the company was working with staff, unions and trustees to address its £3.7bn pension fund deficit. He made no fresh comment on the planned merger with Spain's Iberia.
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