BA posts record £531m loss

British Airways predicts it will break even next year despite posting a record £531m loss for last year.

The carrier saw losses widened in the year to 31 March from the £401m deficit posted last year, hit by cabin crew strikes, high fuel costs and the global recession.

Revenue in the period slumped by £1bn to £7.9bn, down from the £8.9bn registered in 2008/09.

BA will also be bracing itself for further losses caused by the volcanic ash clouds that grounded flights last month, not accounted for in this trading statement.

It will also fear the consequences of further strike action planned by cabin crew after the Court of Appeal gave the go-ahead for the five-day walkouts yesterday (20 May).

Despite the losses, BA says it is targeting revenue growth of 6% this year and expects to breakeven.

“Market conditions are showing improvement from the depressed levels in 2009/10. Cargo is showing significant signs of improvement. Passenger revenue is recovering, with increased corporate activity”, the company says in a statement.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here