| Journal: TWUK | Section: |
| Title: | Issue Date: 04/09/00 |
| Author: | Page Number: 5 |
| Copyright: Other |
Airline Business report reveals British Airways recorded net losses of $416 million
Survey shows BA as the world’s largest loss-making airline in ’99
Report by LOUISE LONGMAN
BRITISH Airways was the world’s largest loss-making airline last year, according to industry figures.A survey compiled by Travel Weekly’s sister title Airline Business shows that the UK national carrier recorded a net loss of $416 million for the 12 months from March 1999 to March 2000.
This compares to a $755 million profit in 1997 and a $341 million profit in 1998.
The publication said rising fuel costs, falling yields and overcapacity were the main reasons for the derisory figures.
However, the sum does not include $400 million made from the one-off sale of assets and shares in subsidiary companies.
BA is followed by TWA in the Top 150 Airline Report, which moved from sixth place in 1998 up to the second highest loss-making airline last year, with a net loss of $353.4 million.
Airline Business editor Kevin O’Toole said:”British Airways has really slipped from being one of the world’s major profit makers to the largest loss maker.
“The airline’s costs have been too high to cope with the steady decline in yields, which has seen capacity crash on Asian routes and North Atlantic routes failing to earn enough money.
“If you ignore BA’s one-off sale of assets and its shares in Galileo and systems company Equant, and compare it with other airlines, then it really has suffered.”
O’Toole added that it was unlikely BA’s profits would go back to levels they were at two years ago but he predicted a profit would be made this year and next year.
He also forecast the strong pound against the dollar would help.
Meanwhile, BA has been knocked from the top 10 list of airlines with the highest passenger numbers, according to the report.
The UKcarrier recorded a total of 36.3 million passengers last year compared to Delta’s number one position as the largest airline with 105.5 million passengers.
Bad year: BA’s losses were blamed on overcapacity, rising fuel costs and falling yields