The title of this blog piece says it all. That is the stark conclusion of BA’s CEO Willie Walsh as he announces a sharp drop in profits and some significant cost-cutting actions…

Not surprisingly, it is the rise in fuel costs that is really hitting BA hard. BA’s fuel costs are expected to top £3 billion for the current financial year, which equates to around £8.2 million per day. I’ll remember that the next time I’m filling up at the local garage!

BA has already increased fares to counter fuel price increases, but it may have to raise them further.

In a quicker response to cut costs, BA has removed 160 flights per week from the airline’s schedules, which is a capacity cut of around 6%. If you are a regular on the BA flights to Newquay, Sarajevo or Poznan, then you’ll need to find an alternative carrier