Snow job for airline profit

21/12/10 15:33 CET

corporate

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Europe’s airlines are starting to add up the cost of the weather disruptions.

AirFrance-KLM says the latest problems over the weekend will mean a loss of 15 to 20 million euros.

The airline’s Chief Executive Pierre-Henri Gourgeon said with the airport closures earlier this month the total cost will be 25 to 35 million euros.

Analysts have estimated that British Airways is losing up to 12 million euros a day.

“We have BA down to deliver revenues of around 27 million pounds (32 million euros) a day in this quarter, so assuming some 70 percent of that is fixed cost, it is probably losing about eight million pounds a day (9.4 million euros) of profit,” said Davy Stockbrokers analyst Stephen Furlong.

He added that the vast majority of BA’s profit comes from its operations out of London’s Heathrow airport.

More about: Air France, Air traffic, Weather

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