British Airways Expects to be Profitable by End of 2010



British Airways blamed their losses on the ongoing strike with cabin crews and the Iceland volcanic eruption.

British Airways blamed their losses on the ongoing strike with cabin crews and the Iceland volcanic eruption.

British Airways has promised to come out of their losses from the beginning of the year and end on a good note.  With a report of a 164 million pound loss for last quarter that will definitely be a change.  British Airways blamed their loss in earnings on the Iceland Volcanic eruption and the ongoing strike with the cabin crew. 

The airline posted a 250 million pound loss to their bottom line.  Head of British Airways, Willie Walsh, predicts cargo volumes will lift profits.  He said: “Cargo volumes are very strong and that points to general improving conditions which has given us the confidence to predict a return to profit for the year.  July bookings are ahead of where they were last year and in 2008, both with premium and non-premium seats.  Future bookings are also ahead of last year.”

Traditionally end of summer vacations should give a boost to profits.  In addition the high travel season of the end of the year holdiays  are a good time for the airlines.

Meanwhile, last week non-union members accepted a wage agreement from British Airways.  However the conflict with union members continues.  Walsh did say he believes a resolution should be coming soon.

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