From ATW Online:
British Airways has suffered yet another downgrade by house broker Merrill Lynch.
The investment bank now is forecasting that BA will post a full-year pre-tax loss of £65 million ($94 million), revised downward from a previous estimate of pre-tax earnings of £150 million. For 2003, pre-tax expectations have been slashed from £316 million to £88 million. In its most recent research note, Merrill Lynch said it is worried about the effects of economic slowdown and the impact of rising costs, including those due to result from the next round of wage negotiations. Additionally, the report noted, there are potential implications for earnings from seeking antitrust approval with American Airlines, as US and European regulators will ask BA to give up landing slots at London Heathrow. Commenting on the downgrade, BA said in a statement that the announcement was "not out of the ordinary" given current market conditions.