Airline Post

As the downturn in business travel continues, British Airways announces record losses and estimates it will need more time to recover that previously expected. The company is set to face a 252 million pound pre-tax loss for the first half of the 2009, making this the second consecutive year without any recorded profit.

Since the summer of 2008, 2,500 jobs have gone and more are likely to follow, according to Willie Walsh, BA’s chief executive. Apart from this, management is also offering their employees the chance to work part-time or to take unpaid leaves.

“BA should see some benefit from lower fuel costs in 2010 but unfortunately the global recession has hit BA hard,” said Tony Shephard, an analyst at Charles Stanley. He added that a “17.7pc decline in premium traffic in April does not bode well for the start of the new financial year.”

As we’re writing this piece of news, Unite, a representation for 14,000 of BA’s cabin crew, are planning a strike in order to prevent the company from changing their salaries and working conditions. The airline announced at the beginning of last month that they’re planning some changes for their staff, including 1,000 voluntary redundancies.

British Airways has also been negotiating a partnership with American Airlines and the Spanish carrier Iberia, which could mean a stronger grasp for the tree on routes across the Atlantic.

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