The mixed flying didn't work well according to management who recently claimed it made short haul loss making and only a new even cheaper and poorer contract was essential to drag the loss making operation into profitability......bottom line is BA have decades of losses at short haul LGW and every time all they do is cut and cut and cut.
Financial reporting is an art form but highly political, you can choose to make some parts look bad by adding ridiculous overheads to them, something Waterworld has form for doing when it suits their cost cutting agenda. Who remembers the new fleet renewal that ended up being used end of lease Wizz Air A320s? Maybe the B737-MAX will change all of that.... 🤣