British Airways slumped to a record loss, nearly doubled its debt pile and canceled its dividend, adding that the tough conditions made it impossible to give any guidance for the current period.
Europe’s third-biggest airline by revenue posted operating losses of £220 million (US$347.5 million) yesterday, compared with a profit of £875 million in 2007-2008.
It had earlier in the year forecast a loss of £150 million, not including restructuring costs of around £80 million.
“The revenue outlook continues to be weak during the current financial year ... In light of this, the board is unable to recommend a dividend this year,” chairman Martin Broughton said in a statement.
BA said it would continue cost-cutting, while flying capacity for next winter will be cut by 4 percent.
The British carrier’s debt rose to £2.4 billion, from £1.3 billion the previous year, while its cash position slid £483 million to just under £1.4 billion.
Analysts and shareholders have been concerned about the group’s pension deficit, which was valued at £1.5 billion in March last year, but is likely to have grown substantially since then.
“If the financial markets deteriorate further, our pension deficit may increase, impacting balance sheet liabilities, which may in turn affect our ability to raise additional funds,” the company said in the statement.
A full actuarial review of the retirement scheme is currently underway, with the results expected to be published in late summer.
The pension deficit has been an issue during merger talks with Spanish partner Iberia, but the Madrid-based airline said last week it was more focused on its own performance than the tie-up discussions.
Air France-KLM showed a glimmer of hope for the battered industry earlier this week when it posted a narrower than expected operating loss, also by squeezing costs.
‘TOO TIRED’: The former mayor’s political party said that he had been questioned for nearly 19 hours, so he declined to be questioned at night, as he felt exhausted Taiwan People’s Party (TPP) Chairman Ko Wen-je (柯文哲) was arrested early yesterday morning after being questioned by prosecutors over his alleged role in a corruption scandal concerning the Core Pacific City redevelopment project during his tenure as Taipei mayor. The arrest was made after Ko refused to be questioned at night and attempted to leave the prosecutors’ office, the Taipei District Prosecutors’ Office said. Prosecutors were worried that he would collude with others involved in the case to make false statements if they allowed him to leave, so they issued an order to arrest him, the office said. Ko yesterday sought a court
ECONOMIC RESILIENCE: Only 11.4 percent of Taiwan’s overseas investments last year were in China, and businesses are dispersing their investments elsewhere, Lai said China’s ambition to annex Taiwan is based on a desire to change the rules-based international order, rather than a desire for territorial gains, President William Lai (賴清德) said in an interview. During an appearance on the talk show The View With Catherine Chang, aired last night, Lai said China aimed to achieve hegemony, and that peace and stability in the Taiwan Strait was an issue of worldwide concern. During the interview, Lai also discussed his “four-pillar plan” for peace and prosperity, which he first outlined in an article published by the Wall Street Journal on July 4 last year. That
Thirty Taiwanese firms, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and ASE Technology Holding Co (日月光投控), yesterday launched a silicon photonics industry alliance, aiming to accelerate the medium’s development and address the energy efficiency of artificial intelligence (AI) devices like data centers. As the world is ushering in a new AI era with tremendous demand for computing power and algorithms, energy consumption is emerging as a critical issue, TSMC vice president of integrated interconnect and packaging business C.K. Hsu (徐國晉) told a media briefing in Taipei. To solve this issue, it is essential to introduce silicon photonics and copackaged optics (CPO)
GRAFT PROBE: Critics questioned Ko claiming he did not know about the Core Pacific floor area ratio issue until this year, citing a 2021 video in which he was asked about it Taiwan People’s Party (TPP) Chairman Ko Wen-je (柯文哲) was released without bail early yesterday, while his deputy during his tenure as Taipei mayor was detained and held incommunicado after being questioned since Friday over graft allegations related to a shopping center redevelopment project. Prosecutors on Saturday filed a request with the Taipei District Court to officially detain Ko and former Taipei deputy mayor Pong Cheng-sheng (彭振聲) over allegations surrounding the redevelopment of Core Pacific City, also known as Living Mall (京華城購物中心). The court yesterday determined that the evidence provided by prosecutors was insufficient to justify the detention of Ko and ordered his