Easyjet up, BA down
Saturday July 31, 2010 - Email this article to a friend

EasyJet saw revenues increase by 5.3% and BA saw its revenues fall by 2.3%.

BA has reported a loss of £164m.

The volcanic ash cloud had a major affect with the no-frills airline saying it cost it around £65m as it cancelled 7,314 flights.

BA says the ash cloud cost it £30m.

The economic woes also played a role in the troubled aviation industry but the main reason for BA's first quarter loss was the on-going industrial dispute by cabin crew.

BA clams that without the action, that had an impact on 15 days in the first quarter, its passenger revenues would have increased by 11%.

It said its cargo business had gone up by 33%.

Outlook improvesOn PlanetSKI we reported on easyJet's performance earlier in the week.

"While some economic experts are flagging the risk of a 'double dip' recession, the steady recovery continues and, on that basis, we continue to target to break even at a profit before tax level for the full year," said BA chief executive, Willie Walsh.

"Despite both revenues and cost being hit by the closure of UK  airspace following the Icelandic volcanic eruption and the impact of industrial action, our financial performance improved during the quarter from underlying revenue increases and further cost reductions," he added

Shares in the national carrier went up 2.7% in trading on Friday morning as it said it hoped to break even over the financial year.

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