05.02.10
BA announced a much smaller than expected loss today for its third quarter, as the benefits of cost cutting programs began to show through. The airline had a pre-tax loss of £50m in the 3 months to December, down from the £122m in 2008 and much smaller than analysts expected.
BA's pre-tax loss in the 9 months to the end of December was £342m, up from £70m in the same period in 2008. However, analysts had predicted the airline would suffer a loss of £151m for the third quarter, taking its loss for the 9 months to £443m.
Willie Walsh, the airline's CEO, said the better than expected figures were the result of of cost-cutting measures across the company. He said: 'Operating costs are down by 10.5 percent and show that we're adapting to the global recession. We still expect to make record losses this year. Permanent structural change is being introduced in all areas and this will return us to profitability.'
Mr Walsh also revealed that the company was working with staff, unions and trustees to address its £3.7bn pension deficit. He made no fresh comment on the merger with Spain's Iberia.
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