Since some people keep bringing up the fact that "WW is discredited in the City" and other such misinformation, I thought I would just post a few quotes that are highly enlightening:
Collins Stewart:
Current trading dire cash flow stability is the target
Current trading is dire; premium volumes are down 15-20% with yields under
pressure. At the current run-rate, revenues are on course to fall by £1bn this
year. The £400m fuel cost reduction is a helpful offset, but significant nonfuel
cost saves are needed. The short-term target is cash flow stability; this
is unlikely this year. Consensus estimates of a £200m operating loss look
optimistic; this could at least double if current trading persists.
Significant staff cost savings needed
Negotiations with staff over changes to pay and conditions are key. There
are a range of legacy issues which need to be eliminated for BA to rebuild
returns. Willie Walsh has set end June as a deadline. So far the ground staff
and cabin crew are unreceptive. There is the possibility of significant
industrial unrest over the next month.
BoA-ML:
Traffic statistics for May – premium still weak, no further
significant deterioration in rate of decline
In May, BA’s load factor declined 1.0pp to 75.1% (this compares to a 2.6pp
increase in April). Premium traffic fell 17.2% reflecting the weak trading backdrop
and continued trading down to the economy cabin. Non-premium fell 4.2%.
Market conditions remain challenging.
Scheduled RPK’s (Demand) -6.5% (April +0.9%)
Scheduled ASK’s (Capacity) -5.3% (April -2.4%)
Passenger Load Factor -1.0pp to 75.1% (April +2.6ppts)
Cargo Traffic (CTKs) -9.5% (April -14.8%)