BA sees more losses, European airline traffic falls
BA (BAY.L) said in an update to investors it expects an operating loss in the year to March 2010 on a level with the year just ending — which was forecast by the airline in January to be 150 million pounds ($212 million).
It said revenue was expected to be down 5 percent, compared with a 3.5 percent rise in the current financial year, and said it would drive through 220 million pounds of cost savings — a move it said would lead to further job cuts.
A ruling on its fresh attempt to form an alliance with American Airlines (AMR.N) is now expected by October, it added.
Meanwhile low-cost rival easyJet ended a long run of rising monthly passenger volumes by reporting a 6.8 percent fall in February on a year ago.
Air Berlin also reported a drop in its passenger numbers, down 8.5 percent in a month where matching 2008 levels was always going to prove more difficult because a leap year in 2008 meant there was an extra day of business a year ago.
BA had said on Wednesday it suffered an 8.3 percent fall in its passenger traffic, while Ireland's Ryanair (RYA.I) has proved the only gainer to date with a 7 percent gain.
Frankfurt Airport operator Fraport (FRAG.DE) braced itself for the decline, saying on Thursday that its 2009 earnings and sales would both fall due to lower demand, although it did see a pick-up in Frankfurt in 2010.
