Airline recorded pre-tax loss of £292 million in past six months

British Airways has suffered a first-half loss for the first time in its history, reporting a pre-tax blow of £292 million and plans to cut 1,200 staff to cut costs.

BA will have shed 4,900 positions by March 2010 to cope with its estimated losses of £1.6 million a day after an especially weak summer for airline travel. The airline made profits of £52 million in the same period last year.

Chief executive Willie Walsh warned the remaining 38,690 staff that further cost reductions were inevitable.

"Aviation remains in recession with revenue likely to be £1bn lower this year," he said.

He told the BBC it had been the "most difficult year in the history of the aviation industry. All airlines are facing the same pressure. Operational changes at British Airways are absolutely necessary to improve the performance of the business."

The situation is further exacerbated as BA is embroiled in a dispute with the trade union Unite who represent its 14,000 cabin crew.

After failing to obtain a High Court injunction to block the changes on Thursday, the union is threatening strike action to start on 21 December unless a compromise can be reached.

Employees are resisting plans to reduce cabin crew on long-haul flights and the implementation of a pay freeze, measures BA claims are necessary for survival.

 

 

 

 

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