British Airways Reports Largest Loss In History
British Airways, Europe’s third-largest long-haul airline, on Friday reported its worst quarterly loss since records began as it reduced tickets prices to stimulate demand amid a sharp slowdown in air travel.
It also said it would pay no dividend in 2008, did not give any guidance for the year and announced further capacity cuts for the winter. It sees no sign of an economic recovery.
British Airways posted a loss of 231 million pounds ($366 million) in the fourth quarter compared to a profit of 74 million pounds in the year-earlier quarter. Its operating loss came in at 309 million pounds, its worst quarterly performance since records began.
The airline gave a bleak outline of the future and, unlike its rival Air France-KLM, said it sees no sign of stabilization.
Chief Executive Willie Walsh told analysts in a conference call that he believes the airline isn’t suffering more than its peers but is being more truthful.
“I think we’re calling it more accurately and more realistically than perhaps some of our competitors,” he said.
Source: Market Watch
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