BA says it can break even despite loss
BRITISH Airways has said that a continuing "steady recovery" in economic activity has given it further confidence that the airline can break even at a pre-tax level in the current financial year.
The comments from the airline came yesterday as it reported a £72m (€86m) operating loss for the three months to the end of June and a pre-tax loss of £164m.
That pre-tax loss compared with an analyst-forecast second-quarter figure of £187m.
Shares in the airline, which is headed by former Aer Lingus boss Willie Walsh, closed up 1.8pc, or 4p, at £2.20 (€2.64) in London yesterday.
Mr Walsh said that despite both revenues and costs at BA having been hit to the tune of £250m (€300.6m) by the closure of UK airspace during the Icelandic volcanic eruption and the impact of 23 days of industrial action among cabin crew, the airline's financial performance improved during the last quarter due to underlying revenue increases and further cost reductions.
"The trends in our passenger and cargo traffic continue to be positive with yields up and costs down," he added. "We must continue to lower costs as revenue grows."