British Airways Plc may have avoided a strike by cabin crew members hours before it was set to go into effect but it will still likely lose millions of pounds as a result of flight cancellations. The airline canceled 1,300 flights and will not be able to reninstate many of them on such short notice. The strike was set into motion when CEO Willie Walsh, in an attempt to trim $100 million in costs a year, attempted to reduce sick leave allowances as well as the number of crew members on flights. The strike was averted only after Walsh agreed to leave current sick leave allowances intact and to raise pay 4.6% in the coming year.
• Sources: Bloomberg, Wall Street Journal, MarketWatch, USA Today
• Related commentary: Cramer's Take on BAB, Seeking Alpha Airlines Theme Page
• Potentially impacted stocks and ETFs: British Airways plc (NYSEARCA:BAB)
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