BA are losing money, Easyjet are making it.
So BA try to compete on price with people who have a lower cost base than they do. They lose even more money.
They then reduce service standards to try and cut the losses. People spot that BA is now offering less than the competition,and see no reason to fly BA.
BA should then go out of business - and if it weren't for LHR they would have done.
BAs only hope is to justify premium pricing by offering a premium service - which they are no longer doing. Every story like this is another nail in the coffin.