BA loss less than expected

British Airways

British Airways (BA) have announced a pre-tax loss of GBP£50 million in the three months to December 2009 - a loss that was less than was predicted.

As well as being less than expected, this figure is a lot less than the GBP£122 million it lost in the same period in 2008.

However, BA's pre-tax loss in the nine months to December rose to £342 million from £70 million in the same period in 2008.

BA is currently locked in a High Court battle with the union Unite over changes to cabin crew contracts and is facing possible strike action.

Analysts had predicted BA would announce a loss of GBP£151 million in the third quarter, taking its loss for the nine months to GBP£443 million.

"Costs are down"

British Airway's chief executive Willie Walsh said, "Operating costs are down by 10.5 percent and show that we've adapted quickly to the new businesses realities created by the global recession.

"We still expect to make record losses this year. Permanent structural change is being introduced in all areas and will return us to sustained profitability," he said in a statement.

Walsh also said the company was working with staff, unions and trustees to address BA's GBP£3.7 billion pension funds' deficit.

Separately, BA said last month's heavy snow took its toll as January traffic fell by seven percent, with premium traffic down by 2.1 percent and non-premium traffic 7.9 percent lower. Cargo business traffic rose by 6.5 percent.

The airline avoided strike action over the Christmas and New Year period after winning a legal challenge against the unite Union.

Unite is re-balloting its 12,000 cabin crew members with the result due on 22 February, the BBC states.

BA said its proposed merger with Iberia is likely to be completed late this year.

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