British Airways (BA) today announced plans to axe its annual spending plans by 20 per cent, ground flights and reduce its capacity forecasts for summer and winter.
The flag carrier, which is still in talks with unions over jobs and pay cuts, said today that it will reduce this year’s capital expenditure from £725 million to £580 million.
The airline said it expects spending to remain in line with the reduced target in the next financial year to 2011.
BA has been exploring a number of options to cut costs after making a £401 million full-year loss on rising fuel prices and falling passenger numbers as cash-strapped holidaymakers choose to stay at home.
BA axes spending by 20% as traffic tumbles - Times Online