British Airways sees GBP1 billion revenue hole in FY2009/2010
British Airways Chief Financial Officer, Keith Williams, stated the carrier expects to make the largest loss in its history for the 12 months ending 31-Mar-2010, and revenue will be “almost certainly” approximately GBP1 billion lower than the previous financial year (Dow Jones, 20-Oct-2009). The carrier reported revenue of just under GBP9 billion in FY2008/2009. A GBP500 million reduction in fuel costs is expect to offset half of the reduction in revenue.
British Airways: "Our revenue this year will almost certainly be about GBP1 billion lower, which leaves a GBP1 billion hole just to stand still from a profit perspective… This year we will still make the single largest loss in our history, more than the GBP401 million pre-tax loss we saw for last year. Our fuel bill is expected to be GBP500 million less this year, which will fill half the GBP1 billion gap, but that still leaves a shortfall of GBP500 million just to stand still,” Keith Williams, CFO. Source: Dow Jones, 20-Oct-2009.