BA cuts flights as profits slump by 88%

(01 August 2008)

British Airways chief Willie Walsh warned the airline industry that it was stuck in its 'worst ever' trading environment on Friday, after the airline announced it was cutting flights amid an 88% fall in profits.

BA is removing over 160 flights per week from its winter schedule, with flights from Gatwick to Newquay, Dresden, Sarajevo and Poznan being dropped altogether, and proposed routes to Oporto and Valencia are also being shelved.

Other popular routes such as London Heathrow to New York and Hong Kong will also see cuts in the number of daily flights.

The airline boss blamed the rocketing price of fuel and the credit crunch for the fall in pre-tax profits, which slumped from £298 million to £37 million in the three months leading up to June 30.

BA's fuel costs are expected to top £3 billion this year as oil prices continue to soar, and at least 25 other airlines have already gone out of business this year.

However, Walsh confirmed that BA would be continuing merger talks with Spanish carrier Iberia.