The British Airways Chief Executive Rod Eddington has said that Europe's...
The British Airways Chief Executive Rod Eddington has said that Europe's biggest airline will rely on cost cuts to narrow losses as demand for trans Atlantic travel continues to be hurt by the effects of September 11th.
A plan to scale back the airline's unprofitable European route network, unveiled in February, will deliver savings for two years while long haul business travel recovers, Eddington said. The airline beat analysts' expectations in the last quarter after slashing costs by twelve percent.
?We have seen a measure of recovery, but the trans Atlantic market is still weak,? Eddington said in an interview at an airline industry summit in Shanghai. ?We had a good last quarter, but that was despite the fact that revenue was down.?
The world's airlines will have combined losses of about $6 billion this year as weaker demand for travel after the September 11th attacks on the US keeps ticket prices down, the International Air Transport Association said at the Shanghai meeting yesterday.