BA Announces Huge Losses, and Job Cuts

British Airways to Cut Jobs Having Suffered Large Losses

Nov 7, 2009

British Airways, having reported losses of over £290 million, has stated that it plans to cut a further 1,200 jobs.

British Airways (BA) has said that it plans to cut a further 1,200 jobs after reporting a huge loss of £292 million in the six months up to the end of September. The announcement comes after a difficult year for the aviation industry, in which the company announced a number of cost cutting measures

British Airways Announces Financial Losses

In the six months ending in September, British Airways (BA) reported a loss of £292 million before tax. A year before, during the same period, the airline made a profit of £52 million.

Normally, the first half of BA's financial year is stronger as it includes the summer where demand for air travel is normally at its highest.

The Chief Executive of BA, Willie Walsh has stated that "Aviation remains in recession with revenue likely to be £1 billion lower this year". He also said that the past year has been the hardest ever for the aviation industry. Mr Walsh also said that the airline also reduce its base costs.

Revenue has fallen 14% to £4.1 billion due to the lowering of ticket prices and elimination of fuel surcharges.

In June 2009, the airline contacted 30,000 of its employees asking them to work without pay for for up to a month, in a effort to save money. The reaction was mixed with some staff reacting positively and co-operating with the schemes whilst others condemned the idea. The airline has maintained that the idea worked, although it is not known the exact amount of money which was saved during the period.

The airline is also offering customers, in an effort to reduce the losses, the ability to pay for reserved seats more than 24-hours before the flight's departure. Another scheme which is reportedly working well is the introduction of all-business class flights from London City Airport to JFK, New York.

Announcement of Future Job Cuts

The airline has stated that it will cut a further 1,200 jobs, having already cut 1,900 posts through voluntary redundancies and lowered overtime.

BA had already planned to cut 3, 700 jobs by March 2010, which, with the newly announced plans will be increased to 4,900 jobs cuts.

Profile of British Airways

The British Airways Group was formed on Sept. 1, 1974 and is the main air carrier of the United Kingdom (regarding size of fleet, number of international flights and destinations) and is headquartered in Waterside, near London's Heathrow airport.The airline currently maintains a fleet of 234 planes and flies to over 150 different destinations.

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