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May 25 2012 13:58
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May 24 2012 17:31
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May 25 2012 11:36
The JSE has identified and stopped "incorrect" trades from one of its members, and will reverse the trades and lower the session's total value after the close.
London - British Airways on Friday reported a net loss of £208m ($346m) for the six months ending in September as revenue fell by 13.7%.
The company's pretax loss of £292m was worse than the consensus of analysts' expectations for a £252m loss.
The first-half net loss compared with a loss of £42m a year earlier, while the pretax loss more than reversed a profit of £52m a year ago.
BA said revenue fell to £4.1bn from £4.75bn a year earlier.
However, the company said it benefited from a 17.8% drop in fuel costs compared to last year - as a result operating costs were 8.7% lower.
Though worse than the consensus of analysts' expectations for a £252m loss, shares in BA rallied a further 3% in early London trading to 192 pence as the company laid out its plans to cut costs further and reduce capacity.
"On balance, BA's determination to cut its cloth has been well received by the market, with the shares having posted a 26% gain over the last year," said Richard Hunter, analyst at Hargreaves Lansdown Stockbrokers.
"BA bulls remain steadfast and in sufficient numbers to counteract the bears," Hunter added.
BA's chief executive Willie Walsh said the company "can't stand still" with revenues likely to be £1bn lower this year and that further cost reductions were "essential".
He said BA intended to cut the equivalent of 3 000 jobs by March and reduce winter capacity by 6%.
Despite the stock market reaction, the company's cost-cutting endeavors threaten to embroil it in labor strife. The Unite union went to court on Thursday in an attempt to stop BA from imposing new contracts on cabin crews.
The union is currently conducting a strike authorization vote, with results due on Dec. 14.
Separately, the company said traffic continued to be depressed in October, down 1.9% measured in revenue passenger kilometers. The load factor rose 3.7% to 80.7% as the company cut back on capacity.
BA said merger talks with Spain's Iberia airline were continuing, and that it is still waiting for US regulators to rule on a proposed joint venture with Iberia and American Airlines on flights between Northern America and Europe.
BA did not break out second-quarter results. It reported a net loss of £106m in the first quarter.
- AP