BA posts a record loss

Truly awful trading figures from British Airways today, illustrating the severe competitive issues facing the airline industry…

BA could be a useful case study business for AQA A2 Unit 4 students to consider researching when the research task for Jan 2010 is issued shortly. There is certainly no shortage of up-to-date information about the business, its competitiors and the market and external environment in which it trades.

Take today’s trading figures. According to the BBC:

“British Airways has announced the biggest loss since the company was privatised in 1987. BA reported a loss before tax of £401m for the year to 31 March, after seeing its results hit by a weak pound and higher fuel costs.”

We learn that BA’s fuel bill was almost £3bn in the last year - a rise of 45% due to higher fuel prices and the weaker pound (aviation fuel is priced in dollars).

BA in particular, and the aviation industry in general, has being going through a period of tremendous change in the last decade. Students would be well advised to watch business developments in this sector closely. The market is a terrific source of examples and information about the nature of change in a global industry.

Click on the video below for a brief clip on the latest BA results:

This short interview with BA CEO Willi Walsh is also worth watching: