‘Running a bad airline is expensive’: is British Airways finally getting better?

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‘Running a bad airline is expensive’: is British Airways finally getting better?
Author: Gwyn Topham Transport correspondent, Pamela Duncan and Michael Goodier
Published: Dec, 28 2024 09:00

Complaining about BA is a ‘national sport’, but even critics says its £7bn turnaround plan is starting to bear fruit. It’s been a long and turbulent time since anyone used British Airways’ old slogan “the world’s favourite airline” with a straight face. After a decade during which the UK flag carrier was tarnished by cost-cutting, IT fiascos, mass redundancies and strikes, BA was then pushed to the brink by Covid.

 [A PR image from 1994 shows a member of a BA cabin crew serve a drink to a passenger]
Image Credit: the Guardian [A PR image from 1994 shows a member of a BA cabin crew serve a drink to a passenger]

Hopes of a smooth recovery disappeared like lost luggage on a carousel, as cancellations and delays plagued an airline seen as pricier than short-haul competitors and dowdier than the Gulf carriers. With burgeoning complaints about customer service, pledges by bosses to turn things round were met with some scepticism.

 [Airways check-in line at Los Angeles airport on 26 December 2024.]
Image Credit: the Guardian [Airways check-in line at Los Angeles airport on 26 December 2024.]

And yet, something strange has happened. The share price of IAG, the Spanish-registered group whose fortunes rest predominantly with BA’s, has doubled in the past 10 months to levels uncharted since before the pandemic – and not just on the back of growing profits revealed in November. City analysts have concluded that BA really – no, really – is getting better after all.

 [Food is served on a flight in 1987]
Image Credit: the Guardian [Food is served on a flight in 1987]

Last Christmas, the airline’s chief executive, Sean Doyle, started talking of the turnaround – confident enough to relocate festive drinks from central London to a Heathrow arrivals lounge to showcase BA’s new offering to grumbling journalists. He promised more was coming: comfier seats, better-quality service, improved reliability. In spring, the airline showcased its plans for a £7bn investment, in an effort to stem the perception that BA was getting left behind by global rivals.

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