American Airlines has reported deepening quarterly losses for the second consecutive year, as weak demand and falling fares drove sales sharply lower. Net quarterly losses, excluding non-recurring charges, sunk to $319m compared to a loss of $298m a year earlier. Group revenues in the second quarter fell 21 percent to $4.89bn and in the first six months by 18 percent to $9.7bn.
British Airways has asked investors to front extra funds as a safety net against a treble whammy of the credit crisis, swine flu, and the impending threat of cabin crew strike action, which it estimates could collectively burn £400 million in reserves.
Steve Ridgway, the chief executive of Virgin Atlantic, has admitted to being aware that his airline had conspired to fix prices with British Airways.
British Airways’ premium market could take at least five years to recover, as over two thirds of businesses slash travel budgets.
British Airways pilots have accepted a pay cut as part of a package of measures to save the airline £26 million but the airline is bracing itself for a tense AGM today.
British Airways has declined to comment on reports that it has received shareholder backing for an emergency rights issue of up to £500 million.
The new chairman of Iberia has pledged to seal the proposed merger with British Airways. Antonio Vazquez Romero said that his aim was to close the deal between the Spanish and British flag carriers after almost a year of dragging.
Merger talks between British Airways and Iberia have been given a boost following the sudden departure of the Spanish flag carrier’s chairman. Fernando Conte has vacated the top job, with the official line that he wanted to step down before his 60th birthday next year. But according to company sources he was ousted because of a lack of progress in merger talks with BA.
British Airways is resuming talks today with unions at resolving a row over cost-cutting measures, including thousands of job losses and a pay-freeze. Unions and airline management spent several hours yesterday discussing the company’s proposals.
British Airways staff have unanimously rejected plans to cut thousands of jobs and freeze pay.A meeting of about 2,000 BA workers, mainly cabin crew, discussed BA’s plan to cut up to 3,700 jobs by March 2010 and freeze pay for all staff.
Cabin crew are poised to reject demands by British Airways for new pay and conditions contracts and up to 3,700 job cuts which chief executive Willie Walsh says is necessary in its “fight for survival”.Rising anger and threats of strike action is leading to fears of a summer of chaos for millions of passengers at the peak of the late July and August holiday season.
British Airways has announced plans to cut its annual spending from £725 to £580 million, as well as axing 3,700 further jobs, in addition to the 2,500 it has cut over the past year.The British flag carrier also said it was delaying the delivery of five Airbus A380s by two years to 2016. It also said it would ground its remaining three mainline Boeing 757 aircraft next summer and a further three Boeing 747-400s in winter 2010.