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BA ANNOUNCES 160m LOSSES

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  • shauny2k1
    Senior Member
    • Jan 2000
    • 185

    BA ANNOUNCES 160m LOSSES

    Incase any of you are interested in reading it, below is a news article from AOL news.

    Shaun

    ----------------------------------------------------------------------
    BRITISH Airways has posted third quarter pre-tax losses of 160 million.

    In the same period a year earlier, it made a pre-tax profit of 65 million.

    The third quarter figures take BA's losses for the first nine months of its financial year to 115 million.

    It was in profit to the tune of 215 million at the same stage a year earlier.

    Operating loss for the quarter was 187 million, compared with an 80 million profit last time.

    For the nine months, operating loss was 65 million. The company enjoyed a profit of 441 million 12 months earlier.

    Chief executive Rod Eddington says: "These results reflect the massive impact on revenue of September 11 and the ongoing economic slowdown.

    "We have made real progress in managing our costs, but British Airways still faces a number of other considerable challenges, some of which were apparent before the terrorist attacks on the USA."

    Mr Eddington says: "These are being addressed as part of our Future Size and Shape review, which will outline the steps necessary to deliver an acceptable rate of return in the market environment of the future."

    Chairman Lord Marshall says: "The general economic weakness in many of our key markets is expected to continue. However, the initial uncertainty and concern caused by the events of September 11 have diminished and, as a consequence, there is an improving revenue trend."
  • shauny2k1
    Senior Member
    • Jan 2000
    • 185

    #2
    RE: BA ANNOUNCES 160m LOSSES

    I've just come across this aswell.

    Looks as though BA may need some to make some decisions, and fast.

    Shaun


    BA staff braced for job cuts

    By Ananova

    British Airways staff are bracing themselves for thousands of job losses as the airline prepares to fight back from one of its biggest ever quarterly losses.

    The company is thought to be on the brink of a major overhaul while squaring up to the low-cost carriers who have taken much of its business.

    Details of the strategic review - known as Future Size and Shape - are being kept under wraps before an announcement later this month.

    The need for action was underlined by figures showing pre-tax losses of B160 million for the last three months of the year. That compared with a pre-tax profit of B65 million a year earlier.

    Fear of flying in the wake of the September 11 terrorist attacks and the impact of the economic slowdown were blamed by BA.

    The bottom-line figure is the biggest since BA racked up a B210 quarterly loss in the wake of the Gulf War in 1991.

    Operating losses for the quarter were B187 million, down from an B80 million profit a year earlier, although the figure was better than the B225 million loss that some analysts had been forecasting.

    Turnover also dived 20% to B1.84 billion, but BA said its revenue trend was starting to show signs of improvement.

    Chief executive Rod Eddington said "considerable challenges" still lay ahead and that tough decisions would have to be made.

    He said: "The future size and shape review will take a hard look at the number of people we employ and there will be additional job losses."

    Reports suggest BA may reduce its staff numbers by another 9,000 over five years - on top of the 7,000 already announced in recent months.

    Mr Eddington did confirm that BA was looking at ways of taking on low-cost carriers such as Ryanair and easyJet.

    It is thought BA will strip back its in-flight service on short-haul European flights, particularly those operating from Gatwick.

    But Mr Eddington ruled out a repeat of the low-cost service Go which BA sold to a management buyout team last year.

    He said: "I've always believed that it is impossible to run a non-frills airline and a full-service airline as part of one company.

    "One gets in the way of the other and you end up confusing your customers and staff."

    While low-cost carriers have reported buoyant figures in recent weeks, BA showed that passenger capacity - a measure of the number of available seats - had fallen by 16.3% after it cut services in the wake of September 11.

    Traffic volumes, which show the actual number of passengers carried relative to the distance flown, declined by 20.3%, BA added.

    While costs in the quarter were reduced by 8.5%, debts rose B339 million to B6.5 billion - almost three times BA's market value.

    Mr Eddington dismissed speculation that BA planned a share rights issue to improve its balance sheet.

    He added: "We have made real progress in managing our costs but British Airways still faces a number of other considerable challenges some of which were apparent before the terrorist attacks."

    Tim Lyle, national officer for the Transport and General Workers' Union, is urging BA to avoid any compulsory redundancies.

    He said: "We are waiting with baited breath for the impending announcement."

    Copyright Ananova 2002 all rights reserved

    Comment

    • KabirT
      Rank 5 Registered User
      • Jan 2000
      • 8157

      #3
      RE: BA ANNOUNCES 160m LOSSES

      hasent United also suffered a huge loss of about $40 million(maybe billion also...not sure)?
      "one is the loneliest number.."

      Comment

      • Ja Worsley
        The last sane man a live!
        • Jan 2000
        • 6550

        #4
        Two mor big A/l's affected

        Qantas is also loosing money, and their recent problems with their employees isn't helping them at all. The Public is no longer confident in this a/l, not since it's sale in to private hands
        They have announced another loss for the second year running!

        Also I was just reading in Aircraft and Aerospace (Jan/Feb 2002), that Singapore Airlines is facing it's frist ever loss, their A$528M profit for the first half of the fiscal year 01/02 is said to be down 36% compared to the same period last year! SIA is said to have posted a A$291M write off for it's investment in Air New Zealand and bare a 91.5% fall off in it's share of Virgin Atlantic. All up they are aced with a debt of A$131.7M, this is bad news for Airbus as the order that was perviously placed with them by SIA will now be canceled!




        In dying for your emperor you will receive everlasting glory. Yeah right!!!
        It's a good thing you are short, that way you don't have to live up to a high IQ!

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