BA (British Airways) announced that they are planning to merge with Qantas (Australian carrier). But still it is very uncertain what the scene will be in the future.
BA reported a 91.6% drop in six-month profits, blaming “incredibly difficult trading conditions” for the plunge. Its pre-tax profit totalled £52m between April and September, down from £616m a year earlier.
Qantas fared better in its results for the year to the end of June. Its pre-tax profit rose 36% to 1.408bn Australian dollars.But the airline warned at the time that the business was starting to see the effects of a slowing economy and rising fuel prices. Last week, Qantas announced a fresh set of capacity cuts as the global financial crisis continued to hit demand for airline seats.
The Chart shows the movement in the share price of BA year to date.
