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British Airways states demand may be starting to recover

9-Nov-2009 1:35 PM

British Airways stated demand may be starting to recover, and volumes and yields appear to have stabilised, after premium traffic fell only 1.4% year-on-year in Oct-2009, compared to 7.9% in Sep-2009 (Bloomberg/Reuters/Dow Jones, 06-Nov-2009). Yields have fallen approximately 12% so far this year, according to CFO, Keith Williams. CEO, Willie Walsh stated revenues are likely to be GBP1 billion lower year-on-year in 2009, and as a result, after reporting a loss before tax of GBP292 million for 1H2009-10. The carrier now plans to cut 3,000 more jobs, in addition to the 1,900 already cut, and cut capacity by 6% during its Winter 2009-10 schedule. BA also plans to defer the delivery of its six A380 aircraft by one year, to 2013-2016.

British Airways:
“Yields have been particularly low over the last six months so we are starting to see some traction. We’re now in a stable period.” Keith Williams, CFO. Source: Bloomberg, 06-Nov-2009.