British Airways Company Cut 1200 More Jobs
Company Info November 6th, 2009
British Airways (BA), Friday (6 / 11) revealed a net loss in the first half four times the same period the previous year and an additional 1200 jobs cut in the program “important” cost reduction.
BA recorded a loss after tax of 217 million pounds (242 million euros, U.S. $ 361 million) for six months until September 30, compared with a loss of 49 million pounds in the same period in 2008.
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“Aviation remains in recession,” BA chief executive Willie Walsh said in a commentary that accompanied the news of the losses in the company.
“With revenues (BA) is likely to be one billion pounds lower this year, we can not keep silent and more significant cost reductions,” he warned.
British Airways said it would cut an additional 1200 jobs, taking total 4900 reduction plan in 2010.
Most of the new disadvantages are outside the UK and follow the high response from the staff who agree to work part time or take voluntary redundancy to help secure the future of the airline.
Reacting to the news of new cost-cutting measures, BA share price rallied 6.28% to 198 pence on the London FTSE 100 index which rose 0.23% to 5137.32 points in midday trading.
BA also announced on Friday that the group sales down nearly 14% to 4.1 billion pounds in the first half.
Some commercial airlines around the world suffered badly from the downturn of the global economy that has cut demand for air travel and the trigger squeezed big cash for this sector.
However, on Monday, low-cost airline of Ireland, Ryanair said that net profit had risen 80% to 387 million euros (U.S. $ 570.8 million) in April-September compared with a figure for the same period 12 months earlier.
On Thursday, the Italian airline Alitalia reports first operating profit since the acquisition by an alliance of business interests of Italy in January.
Meanwhile, BA, in an effort to improve profits and return loss against British rival, Virgin, launched an all business class service from London to New York late September.
Previous efforts of all business class service from airlines like Maxjet and Silverjet failed to turn into the worst decline since the 1930s.
Earlier this year, British Airways decided to remove all the free food other than breakfast on short haul flights in an effort to reduce operating costs.
BA suffered an annual loss of 375 million pounds in the 2008-09 financial year blamed on fuel costs high
