TWO senior bosses at British Airways will work one month for no pay after the airline revealed record losses of £401m.
The company – posting its worst losses since BA’s privatisation in 1987 – said management will forego bonuses and the group would not offer any dividend payout to shareholders as it battles to restore its trading fortunes.
The losses for the year to March 31 compare with profits of £922m last time.
BA chief executive Willie Walsh said he will work for no pay in July as part of efforts to cut costs in the light of the huge losses. Finance director Keith Williams will also work for free in July.
BA said it was offering staff the option of taking unpaid leave or working part-time following the announcement.
Mr Walsh said: “I want everyone seriously to consider these options. Personally, I do not want extra leave or to work part-time. But I certainly want to make a contribution in recognition of the extremely challenging position we face. This is no stunt. I do not easily give up anything I have earned.”
Mr Walsh is paid £735,000 a year and Mr Williams gets £440,000.
BA said it had suffered in the “harshest trading environment we have ever faced,” – with revenues in the fourth quarter alone down by 8.4% and pre-tax losses of £331m.
The global recession was blamed for BA’s premium travel market falling by 13% in the last six months of the year – while the group was forced to offer cut-price discounts to keep non-premium travel broadly flat over the year.
BA chairman Martin Broughton said: “In the last 12 months, we have gone from a record profit to a record loss due to the current tough economic environment. That only serves to underline the extremely difficult trading conditions that we are facing.”
