British Airways boss, Willie Walsh, has the unenviable task of facing shareholders and investors on Friday, and telling them that there is a hole in the year-end accounts of around £600 million. The past year has not been much fun for many airlines who have struggled to cope with the fall in demand caused by the global recession. However, British Airways has also been trying to cope with industrial unrest from its cabin crews, as well as the volcanic ash-cloud which kept much of the BA fleet grounded for nearly a week last month, and which continues to threaten business.

After Walsh announces the airlines enormous losses, he will meet with shareholders to try and persuade them that the airline has a future. This meeting is likely to be overshadowed by the fact that BA cabin crew will have just walked out on strike, again.

British Airways is currently looking to the High Court to provide and injunction against the walkout, which is set to last for five days. It is likely that Walsh will want to steer conversations away from volcanic ash-clouds and industrial action and concentrate on the company’s planned mergers with other airlines.

BA’s merger with Iberia has been given the go-ahead by the Spanish board of directors. Walsh will also be keen to talk about any progress that has been made with the plans to form a transatlantic alliance with American Airlines.

Although some of the company’s losses can be attributed to strikes, redundancy payouts and giant ash-clouds, most of the deficit will be blamed on conditions in the market, which have not been kind to many airlines.