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Short-haul Heathrow routes go as BA profits nose dive


BRITISHAirways is to axe up to 25% of its short-haul routes from Heathrow .



Unprofitable services will be the first to go in a cost-cutting move, with traditional connecting routes from regional UK airports the most vulnerable.



European flights from Gatwick are also under review.



BA chief executive Bob Ayling said short-haul routes from Heathrow could drop from 80 to 60 services. He refused to say which routes would be dropped.



Cuts are expected from this winter, with some European flights shifting to regional airports for direct service to the continent.



BA is believed to have lost £150m in the last year on European routes.



Ayling’s announcement that unprofitable routes will be axed came as the airline revealed pre-tax profits in the year to March 31 had dropped by 61%.



The figure of £225m is down from the 1997/98 result of £580m. In the last quarter the airline made an £85m loss.



In his statement to shareholders, Ayling said: “Exposure to low margin connecting traffic will be reduced, simplifying operations, reducing capital requirements and easing capacity constraints in London.”



Last September, in an exclusive interview with Travel Weekly, Ayling said BA’s low-cost carrier Go may take over some short-haul Heathrow routes to free up slots for more profitable services (Travel Weekly September 9 1998).



British Midland responded to BA’s decision by pledging to safeguard UK routes.



Chairman Sir Michael Bishop said: “Flights to Heathrow and its huge range of connecting services worldwide are valued by cities and communities throughout Britain.



“We have a very comprehensive network from Heathrow which we are committed to retain and we will expand capacity as required.”


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