British Airways has slumped to an unprecedented loss for its key summer trading months, as plans for a strike by thousands of cabin crew risk more financial pain for the airline. The company, which seeks to cut £140m in cabin crew costs, today reported a pre-tax loss of £292m for the six months to the end of September, a usually buoyant period for many airlines because it includes the summer months. Revenues fell to £4.1bn from £4.7bn.

BA enjoyed a profit of £52m in the same period last year despite the UK economy already being in the grip of recession. City analysts had expected a loss of £252m. Willie Walsh, BA's chief executive, has already warned that the airline faces a second straight year without profits for the first time since it was privatised in the 1980s.

The downturn in lucrative business travellers, a volatile fuel price and a set of one-off costs have all left the airline 'fighting for its survival', according to one analyst.

Read the full article in The Telegraph.


Wherefore the third runway now? BA is a shambles in need of resizing and a new direction. Its constant demands for new capacity are outdated in today's economic environment.

Perhaps a change of direction at the top would help.