BA forecasts operating losses; Walsh issues merger warning

Source : ATW

"British Airways warned yesterday that it expects to report an operating loss of "around" £50 million ($69 million) in its third fiscal quarter ended Dec. 31 and a £150 million operating loss for the full year, largely owing to foreign exchange losses. "Further economic weakness in January and the outlook for February and March, combined with the fall in sterling, are impacting our outlook," BA said. It took a £56 million noncash charge in the December quarter related to its foreign currency obligations. In November, it claimed it was "on track and focused on achieving a small profit in the financial year" (ATWOnline, Nov. 10, 2008). The new guidance follows a similar profit warning by Air France KLM, which forecast a €200 million ($259.7 million) operating loss in its fiscal third quarter (ATWOnline, Jan. 23). " Next.