💾 Archived View for gmi.noulin.net › mobileNews › 760.gmi captured on 2023-01-29 at 20:59:14. Gemini links have been rewritten to link to archived content
⬅️ Previous capture (2023-01-29)
-=-=-=-=-=-=-
2008-11-07 13:23:42
Please turn on JavaScript. Media requires JavaScript to play.
BA chief executive Willie Walsh on 'bleakest trading environment ever'
Half-year profits at British Airways have fallen 91.6%, with the airline
blaming "incredibly difficult trading conditions" for the plunge.
BA said pre-tax profit totalled 52m ($81.6m) between April and September, down
from 616m a year earlier.
Willie Walsh, BA's chief executive, said the period would "be remembered as one
of the bleakest on record".
Airlines have been hurt by record fuel prices and the economic downturn is
hitting passenger numbers.
"The industry continues to face very difficult trading conditions on the back
of a weak economic environment," Mr Walsh said.
However, he was confident that the airline would be able to make a "small
profit" for the financial year.
The profit forecast encouraged investors and BA's share price was up 15.6%, or
20.30p, at 150.8p in morning trade.
Flights cut
The airline said it would reduce its number of flights by about 1% in 2009 in
anticipation of less demand from travellers.
The reduction includes the suspension of services from Heathrow to Dhaka and
Kolkata, and Gatwick to Dublin and Zurich.
BA said that its fuel costs were 52% higher than a year ago, although it said
it was well placed to benefit from the current fall in fuel prices.
Aviation fuel prices move in tandem with crude oil prices, which have more than
halved since hitting a record $147 a barrel in July.
However, BA added that hedging and a weaker pound would offset lower prices to
some extent.
Low-cost rival Ryanair also reported a sharp fall in profit earlier this week.
Mr Walsh said that Heathrow Terminal 5 was now running smoothly after a
disastrous opening earlier this year.
He also said a third runway for Heathrow was "critical" for the future of the
UK economy.