This content is not available in your region

BA profit collapses

 BA profit collapses
Text size Aa Aa

British Airways saw its earnings collapsed in the last quarter as a consequence of high oil prices, an economic slowdown and weak consumer confidence. Pre tax quarterly profit plunged by 88% to 47 million euros from around 380 million euros in the first quarter last year.

Chief Executive Willie Walsh said: “This is the worst trading environment the industry has ever faced.” He added: “British Airways is moving into a period of loss. It can do very little about it but to take out capacity and to increase the fares that consumers pay. So, it is not a good news story and there is a lot of problems to face ahead.”

BA said it is now spending over 10 million euros a day on fuel and plans to cut routes and raise fares.

On the possible all-share merger with Spanish carrier Iberia, Walsh said it was “too early to say what impact that will have on the business in terms of jobs.” Analysts have welcomed such a merger saying the consolidations and cost savings make it a sensible strategic move. Walsh called it “good news for both airlines, our shareholders and our customers.’‘

Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.