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BA flight cut 'could be permanent'
04 August 2008

British Airways (BA) has announced that its decision to scrap some flights this winter may be a permanent move.

After revealing a 90% drop in profits for the first quarter of this year, the airline stated that it will reduce its flight capacity by 3% per cent this winter.

Now, BA has also said these flights will not necessarily be reintroduced next summer in time for the holiday season in April.

Willie Walsh, chief executive at BA, told the Observer that soaring fuel costs mean it is uneconomical for the airline to run extra flights on unpopular routes, adding: 'We will do what is right.'

'We have moved from an industry where we have high fixed costs to an industry that has variable costs like fuel,' he added. 'We will look again at the summer schedule.'

Therefore, if oil prices remain high, there is nothing to suggest that it would be any more economical to reintroduce the flights again next summer.

BA is currently in talks with its largest US rival, American Airlines, and the Spanish airline Iberia, about possible mergers, reports the BBC.

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