BA Posts Biggest Losses Since 1987

British Airways announced this morning record losses of £401 million for the year up to 31 March, due mainly to the weak pound and higher fuel costs.

Although the company’s revenues increased to almost £9 billion, BA incurred a near-£3 billion fuel bill. The reported results also included £78 million in redundancy-related costs; the company having cut more than 2,500 jobs since last summer.

An industry analyst claims that one of British Airways’ biggest problems is the 13% drop in business passengers that’s hit the company, resulting in “significant pricing actions” being taken to increase non-business sales.

The good news for travellers, however, is BA Chief Executive Willie Walsh’s statement that, “Fares have been going down and will continue to be very competitive.” He also added, “I don’t expect to see any increase in fares in the coming year.” This news should help entice holidaymakers to book those flights after all, and still be able to afford perks offered by travel extras providers such as GoSimply.com.