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BA set to make £150m annual loss

02/01/2009| 10:17:00 AM| 中文

Published: 27 Jan 2009: British Airways has warned it expects to make an operating loss of about £150m in the airline's 2008/2009 financial year.

Published: 27 Jan 2009: British Airways has warned it expects to make an operating loss of about £150m in the airline´s 2008/2009 financial year.

The airline told the London Stock Exchange that it expected a £50 million operating loss for the third quarter of its financial year, which ended on December 31.

This figure includes a £56 million charge relating to the translation of foreign currency obligations.

"Further economic weakness in January and the outlook for February and March combined with the fall in sterling, are impacting our outlook for the year ended 31 March 2009," stated the airline. "Revenue guidance for the year remains unchanged as being up at least four percent year on year with yields benefiting from exchange more than offsetting volume declines. Traffic volumes remain in line with the market. However costs are being equally impacted by foreign exchange and non-fuel costs are now expected to rise by eight percent year on year compared to our previous guidance of five percent."

"Fuel cost guidance is largely unchanged at around £3 billion as the lower price of fuel is being offset by a lower fuel hedging benefit for the year and currency impacts. The results for the third quarter to 31 December 2008 are expected to show an operating loss of around £50 million which is after a £56 million non-cash charge relating to the retranslation of certain foreign currency obligations."

"At current exchange rates the year to 31 March 2009 is now expected to be an operating loss of some £150 million."

Traffic statistics for January and our third quarter results will be announced on February 6 2009.

A BA spokesman said the carrier´s talks with Iberia were still on-going despite the profit warning, but BA´s latest share price fall has further skewed valuations of the two carriers.
TAGS: BA | Iberia
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