BA suffers £70 million loss
Updated on 06 February 2009
British Airways has announced losses of £70 million in the first nine months of its financial year as costs soared to £7 billion.
The airline confirmed it was talking to staff unions about "pay and productivity" as it looks to slash soaring costs.
It reported a £1 billion increase in costs after it was hit by last year's record fuel prices and more recently the weakness of the pound.
BA's nine-month pre-tax loss of £70 million compared with a profit of £816 million a year ago.
BA chief executive Willie Walsh said the results reflected the economic weakness and fall in sterling.
He said: "We have already taken several actions to offset the unprecedented economic conditions."
He continued: "We have increased our sales activity in markets with stronger foreign currencies to benefit from exchange and continue to offer competitive fares in both premium and non-premium cabins.
"We continue to review every aspect of the business to control costs while at the same time improving the customer experience and operation."
Jim McAuslan, general secretary of the British Airline Pilots' Association, said: "There is little doubt that BA, as with all companies, is facing a very difficult trading environment and will need to take steps to address this.
"We will be undertaking our own financial analysis to provide an independent assessment of the basis of BA's demands for cost reduction.
"We have clear reasons to help, but with a great big health warning - we are not prepared to vary terms and conditions only to find that these are not reinstated in some form when the economy, and BA's trading situation, improve.
"Our help would be an investment, not a gift."
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