BA Profits Crash
Half-year profits at British Airways have fallen 91.6%, with the airline blaming "incredibly difficult trading conditions" for the plunge.
BA said pre-tax profit totalled £52m ($81.6m) between April and September, down from £616m a year earlier.
Willie Walsh, BA's chief executive, said the period would "be remembered as one of the bleakest on record. The period was hit by a crisis in the banking sector, record fuel prices and several airlines going out of business."
BA gave warning that the trading outlook remains very difficult because of the weakening economic climate.
The flag carrier also said that it had been hit by the falling value of the pound, which added around £100 million to costs this year, and it is likely to further compound its problems in the second half.
UK: Car Sales Slump As Recession Bites
Car sales in the UK slumped 21 per cent last month as the industry’s main trade body gave warning that carmakers are struggling with the worst economic conditions for years.
It is the fifth consecutive fall in sales of new cars in Britain and especially significant in light of the new registration plate which was issued in September had been expected to provide a sales boost.
Car registrations numbered 330,295 last month, down from 419,290 in September 2007. New registrations fell an annual 18.6 per cent in August to record their weakest showing since 1966.
Unsurprisingly top of the range cars and gas-guzzlers were heaviest hit with Land Rover falling 49 per cent; Toyota’s luxury brand Lexus fell 44 per cent; Bentley plunged 47 per cent and Alfa Romeo fell 44 per cent.
UK: August New Car Sales Lowest Since 1966
New UK car registrations last month hit the lowest level for any August since 1966, industry figures show.
The Society of Motor Manufacturers and Traders (SMMT) said that new car registrations were down 18.6% to 63,225 compared with the same month in 2007.
It said that declining consumer confidence was hitting sales across all major European markets.
It has called on the UK government to take "sustained action" to boost the economy and restore confidence.
As well as weaker consumer confidence, the high price of petrol has also been deterring buyers.
Pound posts longest run of declines in at least 37 years
The pound fell Friday for an 11th straight day against the dollar, the longest run of declines in at least 37 years, on speculation an economic slowdown will spur the Bank of England to reduce interest rates.
BOE Governor Meryn King's comments earlier in the week that there was more pain still to come for the economy still hang in the air.
The pound fell to $1.8514 from $1.8698 yesterday to cap it's longest losing streak since at least Jan 1971.
The weakening currency underscores concern a slumping housing market is pushing Europe's second-biggest economy toward a recession. A drop in house prices in July brought the property market to a virtual standstill the Royal Institution of Chartered Surveyors said this week.
