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| High costs fuel record loss at BA | High costs fuel record loss at BA |
| (30 minutes later) | |
| British Airways has announced the biggest loss since the company was privatised in 1987. | British Airways has announced the biggest loss since the company was privatised in 1987. |
| BA reported a loss before tax of £401m for the year to 31 March, after seeing its results hit by a weak pound and higher fuel costs. | BA reported a loss before tax of £401m for the year to 31 March, after seeing its results hit by a weak pound and higher fuel costs. |
| The airline made a revised profit of £922m in the previous year. | |
| BA also offered staff the option of taking unpaid leave or working part-time. Chief executive Willie Walsh said he would work for no pay in July. | |
| Mr Walsh said: "I want everyone seriously to consider these options. Personally, I do not want extra leave or to work part-time. | |
| "But I certainly want to make a contribution in recognition of the extremely challenging position we face. This is no stunt. I do not easily give up anything I have earned." | |
| Mr Walsh is earns £735,000 a year. | |
| Finance director Keith Williams, who is paid £440,000, will also forgo his pay for the month of July. | |
| Fuel pressures | |
| Although revenues increased to almost £9bn, BA faced a near-£3bn fuel bill. | |
| Mr Walsh said he saw "no signs of recovery anywhere". | |
| Fuel costs rose 44.5% after the price of oil soared last year. The weaker pound also contributed to rising costs as fuel is bought in US dollars. | Fuel costs rose 44.5% after the price of oil soared last year. The weaker pound also contributed to rising costs as fuel is bought in US dollars. |
| The results included redundancy-related costs of £78m. | The results included redundancy-related costs of £78m. |
| BA said it had cut more than 2,500 jobs since last summer and added that it was in talks with unions about "pay and productivity changes". | BA said it had cut more than 2,500 jobs since last summer and added that it was in talks with unions about "pay and productivity changes". |
| "The prolonged nature of the global downturn makes this the harshest trading environment we have ever faced and, with no immediate improvement visible, market conditions remain challenging," Mr Walsh said. | "The prolonged nature of the global downturn makes this the harshest trading environment we have ever faced and, with no immediate improvement visible, market conditions remain challenging," Mr Walsh said. |
| British Airways has been losing £7 every second for the past year Simon Calder, travel writer | British Airways has been losing £7 every second for the past year Simon Calder, travel writer |
| Jim McAuslan, General Secretary of the British Airline Pilots' Association, said: "We will continue to work with the company to try and find solutions which will mitigate the effects of the economic downturn on our members. | Jim McAuslan, General Secretary of the British Airline Pilots' Association, said: "We will continue to work with the company to try and find solutions which will mitigate the effects of the economic downturn on our members. |
| "In particular, we will be seeking to avoid any compulsory measures." | "In particular, we will be seeking to avoid any compulsory measures." |
| BA also said that should the financial markets deteriorate further, its pension deficit could increase. | BA also said that should the financial markets deteriorate further, its pension deficit could increase. |
| 'Self-inflicted wounds' | 'Self-inflicted wounds' |
| Despite BA's claims that it has been a victim of a downturn in global conditions, analysts say the airline is not entirely blameless for its poor results. | Despite BA's claims that it has been a victim of a downturn in global conditions, analysts say the airline is not entirely blameless for its poor results. |
| Tom Symonds, BBC transport correspondent | Tom Symonds, BBC transport correspondent |
| One of BA's biggest problems is the drop in numbers by 13% of the airline's real earners - the business passengers. | One of BA's biggest problems is the drop in numbers by 13% of the airline's real earners - the business passengers. |
| The airline is doing all it can to keep them flying, including in recent months a Buy One Get One Free offer. | The airline is doing all it can to keep them flying, including in recent months a Buy One Get One Free offer. |
| It is much harder for BA to take on the likes of easyJet and Ryanair when it comes to offering cheap economy seats. And easyJet in particular is deliberately punting for business passengers forced to travel on a budget. | It is much harder for BA to take on the likes of easyJet and Ryanair when it comes to offering cheap economy seats. And easyJet in particular is deliberately punting for business passengers forced to travel on a budget. |
| The other big problem is an old one. BA's fuel bills have soared by 44.5% in the last year. | The other big problem is an old one. BA's fuel bills have soared by 44.5% in the last year. |
| The real problem is that the world's airlines buy their fuel in dollars, and the exchange rate against the pound is not good for BA. Read Tom's thoughts in full | The real problem is that the world's airlines buy their fuel in dollars, and the exchange rate against the pound is not good for BA. Read Tom's thoughts in full |
| "The first half of the year really was [a period of] self-inflicted wounds from the Terminal 5 opening problems," said airline consultant John Strickland. | "The first half of the year really was [a period of] self-inflicted wounds from the Terminal 5 opening problems," said airline consultant John Strickland. |
| Travel writer Simon Calder added that BA had been particularly hit by a fall in premium traffic - business class and first class passengers - which was down 13%. | Travel writer Simon Calder added that BA had been particularly hit by a fall in premium traffic - business class and first class passengers - which was down 13%. |
| "The premium traffic which accounts for half their income has simply dried up," he said. | "The premium traffic which accounts for half their income has simply dried up," he said. |
| "They base their business on the fact that there will be plenty of businesses wanting to fly and businesses are simply cutting back. | "They base their business on the fact that there will be plenty of businesses wanting to fly and businesses are simply cutting back. |
| "British Airways has been losing £7 every second for the past year, which is pretty grim." | "British Airways has been losing £7 every second for the past year, which is pretty grim." |
| However, he added that there were signs of encouragement. | However, he added that there were signs of encouragement. |
| "Their operational performance has been far better after the botched opening of Terminal Five at Heathrow last year - their punctuality has been dramatically improved. | "Their operational performance has been far better after the botched opening of Terminal Five at Heathrow last year - their punctuality has been dramatically improved. |
| "They've gone from being one of the worst to one of the very best," he said. | "They've gone from being one of the worst to one of the very best," he said. |
| The BBC's business editor Robert Peston said that BA's loss was a result of "a lamentable rise in costs", including engineering and aircraft costs, landing fees and staff costs. | The BBC's business editor Robert Peston said that BA's loss was a result of "a lamentable rise in costs", including engineering and aircraft costs, landing fees and staff costs. |
| Fewer passengers | Fewer passengers |
| The airline made an operating loss of £220m. In January it said it expected to make an operating loss of £150m. | The airline made an operating loss of £220m. In January it said it expected to make an operating loss of £150m. |
| The loss was worse than BA had forecast. Shares in the airline were down 2% to 160 pence just after midday, having lost as much as 7% earlier in the day. | The loss was worse than BA had forecast. Shares in the airline were down 2% to 160 pence just after midday, having lost as much as 7% earlier in the day. |
| It's difficult to avoid the impression that at least part of BA's agony, its descent in just 12 months from record profits to record losses, was of its own making Robert Peston, BBC business editor Read Robert's blog See BA's share price | It's difficult to avoid the impression that at least part of BA's agony, its descent in just 12 months from record profits to record losses, was of its own making Robert Peston, BBC business editor Read Robert's blog See BA's share price |
| However, BA said that it had seen a "significantly better" operational performance, and that it had received record customer satisfaction ratings. | However, BA said that it had seen a "significantly better" operational performance, and that it had received record customer satisfaction ratings. |
| The total number of passengers carried fell 4.3% to 33.1m. | The total number of passengers carried fell 4.3% to 33.1m. |
| The results also included the impact of the airline's first full year of operations at Heathrow Terminal 5, and BA said more than 24 million passengers had flown through Terminal 5. | The results also included the impact of the airline's first full year of operations at Heathrow Terminal 5, and BA said more than 24 million passengers had flown through Terminal 5. |
| BA added that it had had to take "significant pricing actions" to stimulate non-premium sales, which were broadly unchanged on the previous year. | BA added that it had had to take "significant pricing actions" to stimulate non-premium sales, which were broadly unchanged on the previous year. |
| "Fares have been going down and will continue to be very competitive," Mr Walsh told the BBC. | "Fares have been going down and will continue to be very competitive," Mr Walsh told the BBC. |
| "I don't expect to see any increase in fares in the coming year," he added. | "I don't expect to see any increase in fares in the coming year," he added. |
| Tough year ahead | Tough year ahead |
| BA said the outlook for the airline industry was tough and it would not be paying a dividend this year. | BA said the outlook for the airline industry was tough and it would not be paying a dividend this year. |
| BA says it has overcome the problems at Terminal Five since its opening | BA says it has overcome the problems at Terminal Five since its opening |
| It plans to reduce capacity by 4% over the winter by parking up to 16 aircraft. | It plans to reduce capacity by 4% over the winter by parking up to 16 aircraft. |
| But the airline also said it expected lower fuel prices to reduce its fuel costs by about £400m in the year ahead. | But the airline also said it expected lower fuel prices to reduce its fuel costs by about £400m in the year ahead. |
| Mr Walsh also criticised the UK government's decision to double air passenger duty from next year. | Mr Walsh also criticised the UK government's decision to double air passenger duty from next year. |
| "[It] will undoubtedly disadvantage the UK's competitive position within the airline industry," he said. | "[It] will undoubtedly disadvantage the UK's competitive position within the airline industry," he said. |
| BA is currently in talks with American Airlines and Iberia about possible tie-ups. It said that both the US Department of Transportation and the European Union were continuing to assess its application for anti-trust immunity. | BA is currently in talks with American Airlines and Iberia about possible tie-ups. It said that both the US Department of Transportation and the European Union were continuing to assess its application for anti-trust immunity. |
| Industry woes | Industry woes |
| BA is not the only airline suffering in the global recession, as higher fuel prices and a drop in demand for air travel have affected the whole industry. | BA is not the only airline suffering in the global recession, as higher fuel prices and a drop in demand for air travel have affected the whole industry. |
| Also on Friday, the Emirates group reported a 72% fall in profits. | Also on Friday, the Emirates group reported a 72% fall in profits. |
| The Dubai-based airline announced an annual net profit of 1.49bn dirhams ($406m; £255m), down from 5.3bn dirhams the previous year. | The Dubai-based airline announced an annual net profit of 1.49bn dirhams ($406m; £255m), down from 5.3bn dirhams the previous year. |
| On Wednesday Air France-KLM revealed a net loss of 505m euros ($705m; £444m) in the three months to 31 March, compared with a 534m euro loss in the same period a year earlier. | On Wednesday Air France-KLM revealed a net loss of 505m euros ($705m; £444m) in the three months to 31 March, compared with a 534m euro loss in the same period a year earlier. |
| The firm also said it expected to shed about 3,000 jobs in the next financial year, in addition to the 2,700 posts eliminated in the fiscal year to 31 March 2009. | The firm also said it expected to shed about 3,000 jobs in the next financial year, in addition to the 2,700 posts eliminated in the fiscal year to 31 March 2009. |
| BBC News is interested to hear from people who're affected by this story. | BBC News is interested to hear from people who're affected by this story. |
| Do you work for British Airways? What are your thoughts about the situation the airline finds itself in? Have you already been affected by cuts with the company? Tell us what you think by filling in the form below. | Do you work for British Airways? What are your thoughts about the situation the airline finds itself in? Have you already been affected by cuts with the company? Tell us what you think by filling in the form below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |