British Airways shares were shunned by the market yesterday, losing 8.5%, after the carrier issued a brief update, blaming the pound's decline for further deterioration of its financial position, which will mean operating losses of GBP50 million for 3Q09 and GBP150 million for the full year to 31-Mar-09.
According to BA, "results for the third quarter to 31 December 2008 are expected to show an operating loss of around £50 million which is after a £56 million non-cash charge relating to the retranslation of certain foreign currency obligations. At current exchange rates the year to 31 March 2009 is now expected to be an operating loss of some £150 million."
BA shares have lost over a quarter of their value this month alone, and major network airline competitors, Air France-KLM and Lufthansa, have not fared greatly better. Some consolation for BA came in the form of a surge in the GBP against the dollar yesterday, from 1.35 to 1.40.
European selected airlines daily share price movements (% change): 26-Jan-09