Airline predicts £150m operating loss for year
British Airways today (January 26) issued a profits warning after claiming that further economic weakness was impacting its performance for the current financial year.
The UK carrier said it expected a loss of around £50m the last quarter to the end of December 31.
It predicted that its operating losses for the full year to March 31 would be around £150m.
BA said its guidance on revenue for the year was unchanged, increasing by at least 4% year on year and with exchange rates "more than offsetting volume declines."
But the airline said its costs were being equally hit by currency exchange rates and were now expected to rise by 8% rather than the previously predicted 5%.
It said its guidance on fuel costs was also unchanged at around £3bn with the current lower price offsetting costs for the year.
The carrier added: "The results for the third quarter to 31 December 2008 are expected to show an operating loss of around £50m which is after a £56m non-cash charge relating to the retranslation of certain foreign currency obligations.
"At current exchange rates the year to 31 March 2009 is now expected to be an operating loss of some £150m."
BA said it would announce it traffic figures for January and third quarter results on February 6.
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