British Airways states demand may be starting to recover
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.