The upturn is here!
British Airways first-class and business-class passengers down by 20 per cent
British Airways’ first-class and business-class passenger numbers fell by 20 per cent last month as the airline admitted that it was spending £2.7 million of cash every day.
Traffic figures for February were hit by continued weakness in demand because of the economic downturn and also by snow at the start of the month. The poor figures came as BA prepared to meet institutional shareholders today amid growing concern about its financial position.
BA has said that it will suffer an operating loss of £150 million in its year to March 31 after a £900 million profit last year. Analysts fear that next year may be even worse, with some predicting losses of more than £400 million.
Keith Williams, BA’s finance director, said last week that the airline was getting through cash at a rate of £2.7 million a day and that cash balances were falling too fast.
Are we likely to see a bankrupt BA? or will they consolidate and live to fight another day?
