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British Airways PLC (BAY)

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Monday 19 April, 2010

British Airways PLC

Impact of volcanic ash flight

RNS Number : 3953K
British Airways PLC
19 April 2010
 



IMPACT OF VOLCANIC ASH FLIGHT CANCELLATIONS

 

 

Due to the closure of UK airspace following the volcanic eruption in Iceland, virtually all British Airways flights have been grounded since 11.00 on Thursday April 15, 2010.

 

British Airways chief executive, Willie Walsh, said: "This is an unprecedented situation that is having a huge impact on customers and airlines alike. We continue to offer as much support as we can to our customers, however, these are extraordinary circumstances that are beyond all airlines' control.

 

 "To assist us with this situation, European airlines have asked the EU and national governments for financial compensation for the closure of airspace. There is a precedent for this to happen as compensation was paid after the closure of US airspace following the terrorist events of 9/11 and clearly the impact of the current situation is more considerable.

 

"We welcome the EU's initiative to address the economic consequences of the airspace closure on the air travel industry and the wider European economy. We are also in touch with the UK government which has set up a group to work on this issue as it recognises the impact on airlines and the contribution that aviation makes to the British economy."

 

British Airways estimates that the lost passenger and freight revenue together with the costs incurred on supporting passengers is approximately £15-20 million a day.

 

The company has significant funding available to it to sustain a considerable period of closure of the UK's airspace. At the start of the flying restrictions on April 14, 2010 it had more than £1.7 billion of cash and more than £400 million available credit lines which it can draw on if necessary.

 

British Airways has cancelled all flights in and out of the UK today. Its flying schedule remains under constant review and it will give customers as much notice as possible about their flights as it receives updates from NATS.

 

Customers booked to travel on a cancelled flight can claim a full refund or rebook their flight for a later date. The airline advises customers to check their exact flight details on ba.com before departing for the airport.

 

Ends

April 19, 2010                                                                                                                 36/LG/10

 

 

Certain information included in these statements is forward-looking and involves risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward looking statements.

 

Forward-looking statements include, without limitation, projections relating to results of operations and financial conditions and the Company's plans and objectives for future operations, including, without limitation, discussions of the Company's Business Plan programs, expected future revenues, financing plans and expected expenditures and divestments. All forward-looking statements in this report are based upon information known to the Company on the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

 

It is not reasonably possible to itemize all of the many factors and specific events that could cause the Company's forward looking statements to be incorrect or that could otherwise have a material adverse effect on the future operations or results of an airline operating in the global economy.  Fuller information on some factors which could result in material difference to the results is available in the Company's Annual Report for the year ended March 31, 2009, which is available on www.bashareholders.com.

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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