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21.05.2010 13:50
© BriYYZ @flickr.com
British Airways on Friday announced a record annual pre-tax loss of $765 million.
The losses are for the 12 months ending March 31, 2010, so they do not take into account losses incurred from the travel disruption caused by the volcanic ash cloud, or the latest threat of strike action by the union representing its cabin crews.
BA's pre-tax losses in the previous fiscal year were $577 million.
"Despite a £1 billion ($1.44 billion) drop in revenue during the year, our determined efforts on cost control mean that costs have reduced at a comparable level and our operating loss is virtually the same as in the previous year," BA Chief Executive Willie Walsh said in a statement.
BA's reputation in a tailspin
"To be in the midst of the biggest economic downturn in 60 years and produce the same operating figure as last year shows the hard work that has been put into steering our business through the recession."
Costs are down by £1 billion, equaling the drop in revenue, Walsh said. He criticized Unite, the union representing 95 percent of BA's cabin crew members, for standing in the way of further cost reductions.
"Returning the business to profitability requires permanent change across the company, and it's disappointing that our cabin crew union fails to recognize that," Walsh said.
Unite and BA have been locked in an acrimonious dispute over the airline's plans to reduce pay and change working conditions, including reducing cabin crew staff on some flights in order to save money. The union says the changes will hurt customer service and damage the BA brand.
The union staged two strikes in March over the issues, and it plans a series of three more, starting Monday.
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