Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point
On Air
Feedback
Low Graphics
Help

Tuesday, February 9, 1999 Published at 08:20 GMT


Business: The Company File

British Airways makes a loss

British Airways: a cost-cutting programme has hit staff morale

Tough competition in the airline industry has pushed British Airways into the red. The company announced a rare quarterly loss of £75m ($122.4m).


Hayley Millar reports on the background to these latest figures
The company is not lacking passengers, but to many - highly profitable - business travellers BA is not the world's favourite airline anymore.

However, the losses were smaller than most analysts' had predicted and BA says it would have still turned in a profit of £42m had it not been for a debt revaluation charge because of fluctuations in the Japanese currency, the yen.

The airline's chief executive, Robert Ayling, remains bullish about the future: "British Airways will emerge from the current difficult market conditions with lower costs and an aircraft fleet focused on the most profitable sections of the market."

He said the medium-to long-term prospects for the business were "very good indeed" and predicted that the £1bn cost-cutting drive known as the Business Efficiency Programme would eventually pay off.

It is this cost-cutting, though, that got BA into trouble in the first place. Staff morale is said to be low and a strike during 1997 hit business hard.

The £75m loss during the three months to December compares with an £80m profit the year before. It is the airline's first quarterly loss since 1995 and its first third-quarter loss since it was privatised in 1987.

For the first nine months of the financial year, BA reported pre-tax profits of £310m, down from 510m a year earlier.





Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage | ©


The Company File Contents


Relevant Stories

09 Feb 99 | The Company File
Turbulent times at British Airways

23 Oct 98 | The Company File
US turbulence for BA-AA deal

23 Oct 98 | The Company File
Take-off for BA's global airline

13 Oct 98 | The Company File
BA launches new salvo in price war





Internet Links


British Airways


The BBC is not responsible for the content of external internet sites.




In this section

Microsoft trial mediator welcomed

Vodafone takeover battle heats up

Christmas turkey strike vote

NatWest bid timetable frozen

France faces EU action over electricity

Pace enters US cable heartland

Mannesmann fights back

Storehouse splits up Mothercare and Bhs

The rapid rise of Vodafone

The hidden shopping bills

Europe's top net stock

Safeway faces cash demand probe

Mitchell intervenes to help shipyard

New factory creates 500 jobs

Drugs company announces 300 jobs

BT speeds internet access

ICL creates 1,000 UK jobs

National Power splits in two

NTT to slash workforce

Scoot links up with Vivendi

New freedom for Post Office

Insolvent firms to get breathing space

Airtours profits jump 12%

Freeserve shares surge

LVMH buys UK auction house

Rover - a car firm's troubles