BA announces record pre-tax loss of £292m

BRITISH Airways remained deep in the red today after it announced a record pre-tax loss of £292 million for the six months to the end of September.

The airline, which recorded a loss of £401m in its previous financial year, said total revenues slumped by almost 14 per cent in the period.

It is the first time that BA has recorded a first half loss – normally a buoyant period for the airline as it includes the holiday season.

Today's deficit is around £40m higher than City analysts had been expecting. Even when items such as pension costs are excluded BA made a loss of £111m , against a profit of £140m a year earlier.

The industry as a whole is expected to lose 11 billion US dollars (£6.65 billion) this year as a result of the recession's impact on passenger numbers and demand for business class travel.

Willie Walsh, chief executive, said the company reduced costs by some £400m after manpower was cut by 1,900 roles through reduced overtime, increased part-time working and voluntary redundancy.