British Airways has no plans to review its current Northern Ireland schedules despite fresh warnings of further rationalisation of its network following a mammoth slump in second-quarter profits.
The largest airline in Europe yesterday revealed the full financial impact of the recent terrorist attacks on New York, which have devastated the global aviation sector.
British Airways posted a 73 per cent decline in operating profits for the three months ending September 2001 and gave advance notice of a further "significant" operating loss to come.
The airline's pre-tax profits for the quarter amounted to £5 million sterling (€8.1 million) compared to £200 million for the same period last year. Group turnover for the second quarter also fell year on year by 11.8 per cent to £2.25 billion on the back of the airline's reduced flying programme implemented after the events of September 11th.
British Airways said yesterday that the terrorist attacks combined with the downturn in the American economy and the impact of the foot-and-mouth crisis had severely reduced its traffic volumes in its second financial quarter.
Mr Rod Eddington, chief executive of British Airways, said the airline would now consider further rationalisation of its network. Its share price has fallen by 45 per cent since the US atrocities .
"The impact on our interim and second-quarter results should come as no surprise. We remain committed to our strategy of maximising our share of profitable business and reducing less profitable capacity, as well as removing further costs," Mr Eddington said.
The airline plans to shed 7,200 jobs throughout its operation. It has already grounded 20 aircraft and axed a number of routes in its bid to control costs in the current economic climate.
British Airways axed one of its most popular routes from Northern Ireland last month, the Belfast to Heathrow service, as part of its global rationalisation programme. This has resulted in the loss of 160 jobs in the North and the closure of its main operating base at Belfast International Airport.
A British Airways spokeswoman said the airline remained committed to its "comprehensive" network of routes from Belfast City Airport, which currently services seven destinations in the UK.
She said the routes were not subject to a review and would continue to be operated by City Express, British Airways' wholly-owned subsidiary. The airline will look at potential new alliances with other airlines to safeguard its future. It has £1.1 billion in cash, a £800 million bank facility and £1.5 billion in assets.
