You are here: Home - Uncategorized -

Profits lose their altitude at British Airways

0
Written by:
02/02/2007

After a torrid winter, British Airways (BA) has announced a drop in quarterly profits from £166m last year to £113m this time.

The announcement comes just a few days after BA reached an agreement with unions over pay, disputed pension rights and handling sickness issues, and narrowly averted an all-out strike by cabin crew.

The planned industrial action would have grounded BA flights – about 1,300 of them – from Heathrow and Gatwick and caused major disruption.

Because of this prospect many passengers cancelled their flights, losing BA valuable UK investment revenue in the process. BA estimated that it had directly lost about £80m because of the problems.

BA also said that severe fog before Christmas and the failure of the baggage system on two occasions in December at Terminal 4 at Heathrow had cost the company about £40m in the last quarter of 2006,a significant part of its UK investment.

Chief executive Willie Walsh said: “The patience and loyalty of our customers have been tested over Christmas. I wish to apologise for the inconvenience they have suffered during this period.”

BA said it was cutting its full-year revenue guidance to 3.25%-3.75% growth, compared to a 4.5%-5% forecast in November.

 

 

 

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Spending on credit cards falls for the first time

Credit card spending fell for the first time since they were launched in the 1960s, with increasingly cautious consumers unwilling...

Close