The New Nation - Internet Edition

BBC online

British Airways says it plans to cut a further 1,200 jobs after reporting a first-half loss for the first time.

The job loss announcement means the airline will have shed a total of 4,900 positions by March 2010.

The company suffered a loss before tax of £292m for the six months to the end of September, compared with profits of £52m a year earlier.

The first half of BA's financial year is usually its strongest because it covers the summer holiday season. BA said revenue over the six-month period was down 13.7%.

"Aviation remains in recession with revenue likely to be £1bn lower this year," said BA chief executive Willie Walsh.

He told the BBC that this had been the "most difficult year in the history of the aviation industry".

"All airlines are facing the same pressure. Operational changes at British Airways are absolutely necessary to improve the performance of the business," he said.

BA has already achieved 1,900 global job reductions by natural wastage, voluntary redundancies and reduced overtime.

BA is currently in a battle with unions over changes to jobs and pay. It wants to cut the number of cabin crew staff on its long-haul flights from 15 to 14, with the change coming into effect on 16 November.

The company is also proposing a two-year pay freeze. It says the changes are essential to its survival.

On Thursday, the Unite union said it would continue with a strike ballot of British Airways cabin staff over the changes, despite its legal challenge to the new working patterns being delayed.

Unite had sought a High Court injunction to have the changes blocked, but the full trial will now not go ahead until 1 February.

Unite said staff would "unwillingly" work the new schedules from this month but it would still ballot for a strike. The result of the strike vote will be known on 14 December.

Analysts said the latest figures could be used as ammunition by the union.

"These weak results will underscore their fragility to unions opposed to wholesale restructuring that is required if BA aims to survive this downturn," said Saj Ahmad from Gerson Lehrman Group.

British Airways says that revenue also fell, down 13.7% at £4.1bn, compared with £4.8bn in 2008.

Operating costs were down 8.7%, despite the weakening of the pound, and fuel costs were also lower by 17.8% compared with the same period last year.

Within the report, BA was keen to stress that in the first half of 2009 it had launched its first ever long haul flights from London City Airport, on an all-business class, 32-seater Airbus A318.

It also pointed to its customer satisfaction ratings that suggest 70% of customers are highly satisfied with the airline.

This morning shares in the company rose 7.1% to 199.60p.