Latest airline news : BA breaks even despite strike plus Easyjet, Iberia, American Airlines
Latest airline news : BA breaks even despite strike plus Easyjet, Iberia, American Airlines
2010/07/30 by ukcitymedia.co.uk about : Company Reports - 0 Comments - 374 words
No major suprises at British Airways and no huge losses either after the company reported its first quarter in which the airline expects to break-even for the year.
BA has been hit by the grounding of airlines due volcanic ash clouds from Iceland earlier in the year and also strike action of its cabin crew who objected to changes in manning, working practice and proposed pay structures.
UKs biggest airline reported losses before tax of £164m in the three months till end of June from £148m previously with revenue falling by £46m, or 2.3%. BA capacity was also reported down 11.2%.
BA's chief executive Willie Walsh was upbeat despite the results claiming that passenger revenue for Britains leading airline would have increased by about 11% year on year but for the flights and services disruption.
BA also indicated that passenger trends continue to be positive with yields up and costs down. Cargo traffic also shows a positive trend as operating costs were reported down by 3.3% in Q1. Walsh added “While some economic experts are flagging the risk of a "double dip" recession, the steady recovery continues."
BA also confirmed that it is able to pursue new strategic alliances for the benefit of customer and profits after US authorities recently gave the go ahead to possible route sharing and service tie-ups with fellow operators American Airlines and Iberia.
Earlier this week Easyjet reported that volcanic ash cloud disruption had cost the airline £65m although it reported sales up by 5.3% to £759.2m for the three months to June.
Easyjet still faces action from main shareholder Sir Stelios Haji-Ioannou over use of the “easy” brand name. Sir Stelios is also concerned that the budget airline still does have enough aircraft or crew and Easyjet announce today that the airline intends to acquire three new airliners and employ cabin crew accordingly.
The airline has been criticised for punctuality particularly at Gatwick Airport and intends to complete the expansions during the summer.
Easyjet chief executive Carolyn McCall added “We need to get Gatwick performing well because it affects the whole network... there are crew shortages in certain places and we need to get to the bottom of why.”
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