Loading

British Airways jumps on possible job cuts, Austrian falls on insolvency fears

British Airways stated it is considering further job cuts, possibly via voluntary redundancy scheme, to improve cost efficiency. Investors seized on the news, shrugging off the carrier's disclosure of a nine-month pre-tax loss, sending British Airways shares up 10.5% by the close on 06-Feb-09.

BA reported premium traffic fell 13.7% in Jan-09 year-on-year. The airline is considering capacity cuts for the upcoming Winter season.

Meanwhile, Austrian Airlines' state-owned parent, OeIAG, stated the airline could become insolvent if a planned takeover by Lufthansa falls through. The airline's shares sank 9.6%.

European selected airlines daily share price movements (% change): 06-Feb-09