BA To Make Further Losses, Hints At Job Cuts

British Airways warned on Thursday it expected an operating loss on a par with the GBP150 million pound (USD$212.1 million) shortfall predicted for the year just ending and hinted that job losses may be on the cards.

The airline said that for its 2009/2010 business year, starting in April, it expected a "similar operating result" to that forecast for the year to end-March.

The airline warned in January it would post an operating loss of GBP150 million in the current business year, hit by the weak economy and declining sterling.

In another sign that job cuts may lie ahead, British Airways said it aimed to cut non-fuel costs by GBP220 million (USD$311 million) in the coming year with a further GBP80 million reduction seen for its 2010/2011 business year.

It also said its profit projections for the year ahead did not include the impact of any severance costs.

The airline, which is grappling with a big fall in business travel as a result of the global financial crisis, said it expected revenue in the 12 months to March 2010 to fall 5 percent and for fuel costs to drop 10 percent.

Passenger capacity over the coming summer was likely to be 2 percent below 2008 levels and capital expenditure next year is seen at GBP725 million, the company said.