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.