British Airways will disappoint shareholders again this week by refusing to pay a dividend, even though the airline is expected to announce record profits of about 870m later this week, the Daily Mail reports.
Although the airline has met its own criteria for paying a dividend, analysts say it 'could end up with egg on its face' if it has to withdraw the payment to shareholders a year later as it hits strong economic headwinds, the newspaper adds.
BA's chief executive, Willie Walsh, had previously hinted strongly that the dividend would be restored once the airline had settled its pension deficit problem and had managed to make a 10% profit margin. Their fury could be compounded if Walsh accepts a £700,000 bonus on top of a similar salary level after the disastrous opening of Terminal 5.
Sensitive to the possibility of another PR disaster, the Mail says Mr Walsh is likely to forgo the bonus. A crucial board meeting on Thursday will decide on the dividend and bonus - a day before declaring results for the year to March 31. |
