BA begins talks on pay and productivity with unions

British Airways is warning that the airline industry is facing “very difficult” trading conditions due to worsening economic conditions.

The carrier has reported a pre-tax loss of £70 million for the nine-month period that ended 31 December, as compared with a profit of £816 million for the same nine months in 2007.

It has cited a weakened economy and the decline in value of the pound as the reasons for the loss.

The airline is continuing to predict that it will see a £150 million loss for the current financial year.

“Our efforts are focused on continuing to improve the customer experience and the profitability of the business during very difficult trading conditions,” a statement for the airline noted.

It went on to say: “The current weak economic environment drives a need for significant cost reduction, as revenue growth will be difficult. In the period we completed a management restructuring and associated voluntary severance programme,” adding: “We have opened discussions with the trade unions about pay and productivity, which is required to improve the financial performance of the company.”

Willie Walsh, the chief executive of BA, said: “These results have been hit by further economic weakness and the fall in sterling. This has resulted in an operating profit of £89 million.”

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www.britishairways.com