www.britishairways.com

British Airways has reported a record full-year pre-tax loss of £401 million, in sharp contrast to the record profit of £922 million that it posted for the previous year.

According to the carrier, the dramatic plunge reflects the overall bleak trading environment in the airline industry.

The airline will cut its capacity by a further four per cent for the upcoming winter season, as compared with last year, removing as many as 16 aircraft from service.

BA chairman, Martin Broughton, said: “In the last 12 months we have gone from a record profit to a record loss due to the current tough economic environment. That only serves to underline the extremely difficult trading conditions that we are facing, despite our best ever operational performance, and any recovery is likely to take longer than initially envisaged.”

The chairman added: “The revenue outlook continues to be weak during the current financial year but we expect lower fuel prices to reduce our fuel costs by approximately £400 million.”

Willie Walsh, the airline’s chief executive, criticised the government’s plan to double the amount of Air Passenger Duty beginning next year.

He warned that the move would “undoubtedly disadvantage the UK’s competitive position within the airline industry.”

Walsh added that staff are being offered unpaid leave options, as well as part-time work options, and that no base pay increases are planned.

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www.britishairways.com