BA losses show cabin crew deal is vital, says union

A Unite union picket line during this year’s strikes by cabin crew. Photograph: Max Nash/AFP/Getty Images

The Unite union said today that British Airways’s £164m quarterly loss underlined the importance of the carrier reaching a deal with its cabin crew.

The disruption caused by the volcanic ash cloud in the spring, coupled with the effects of a bitter dispute with its own cabin crew, knocked British Airways into a £164m loss over the past three months.

Earlier this month, cabin crew members rejected the airline’s final pay offer in a move that raises the prospect of further strike action as early as September, which could ground more flights. Unite, which represents 90% of BA’s 12,000 cabin crew, said 67% of its members voted against BA’s final pay offer, which included two years’ guaranteed basic salary increase.

Derek Simpson, Unite joint general secretary, said today: “This is a dispute over £10m. Contrast that with the £164m in losses this quarter alone and questions must be asked about the direction of BA’s management and the sense of them maintaining this dispute with cabin crew.

“These losses bring no pleasure to Unite. It is never our intention to see BA struggle. We would far prefer to se it thrive and the way to ensure this is to settle peacefully with cabin crew.”

Talks are due to be held at the conciliation service Acas on Monday. Union sources said that they were keen to resolve the dispute with BA but they are understood to be pessimistic about the chances of a breakthrough. Unite has planned strike meetings with its officials next week to discuss any progress made at the talks and whether to take further industrial action if the impasse continues.

Panmure Gordon analyst James Cooke noted that without the industrial action and Icelandic ash disruption, revenues would have risen 11%.

But he added: “The speed of the revenue improvements may be held back by the uncertain economic recovery, especially if we are moving towards a double-dip recession.”