British Airways Reports Record Loss of $942 Million
British Airways is reporting a record loss of £595 million ($942 million) in the last year. This is a precipitous decline from last year's record profit.
The airline blames its slump on higher fuel prices and fewer leisure travellers due to the tough economic climate. Also, BA managers will not receive bonuses this year, nor will shareholders be able to collect dividends.
British Airways, Europe's third-largest carrier, is in merger talks with Iberia Airlines and American Airlines.
The slump, due to high fuel costs and weak demand, came a year after the airline reported a record profit of $1.13bn.
BA says there is "no guidance for the current year", which means "we have no idea when things will improve".