British Airways has reported a 50 million pound loss in its third quarter, but warned of record losses to come this year
By Ellie Duncan
The airline said total operating costs were down 10.5 percent in the period September to December 2009, despite the weak sterling.
However, the third quarter saw the company post its first operating profit since the second quarter of last year, mainly as a result of the considerable progress made to reduce costs.
Chief Executive, Willie Walsh, said that while the company was on the “right track”, he still expects record losses. He added that structural changes would bring a return to sustained profitability.
The loss is well below the 150 million pounds predicted by analysts.
Passenger revenue also declined in the quarter by 13 percent, while capacity was down 3.9 percent.
Walsh said the airline’s 3.7 billion pound pension deficit was under discussion.
Meanwhile, Walsh remains confident that British Airways will receive regulatory approval for its proposed transatlantic joint business with American Airlines and Iberia.
Edited by Jennifer Denby
Source: www.britishairways.com/travel/about-british-airways/public/en_gb