British Airways canceled some money-losing routes served by its regional subsidiary BA Connect on Monday as it sold the business to budget carrier Flybe for an undisclosed sum.
"These routes need to be canceled to protect the ongoing viability of the business," British Airways PLC said on its Web site.
BA said many of the canceled services duplicated Flybe's routes.
With the acquisition of BA Connect, Flybe will have 152 routes to 36 European destinations, British Airways said. BA Connect serves smaller regional airports in the United Kingdom and the Isle of Man.
The former state carrier will absorb an additional 20 million pound ($38.9 million) charge in consequence of the sale, on top of a charge of 106 million pounds ($206 million) disclosed when the deal was announced in November.
As part of the deal, British Airways will take a 15 percent stake in Flybe.
British Airways shares were down 6.3 percent at 498.25 pence ($9.69) on the London Stock Exchange.
Analysts attributed the drop to concerns about a draft "open skies" agreement between the United States and the European Union announced on Friday that exposes British Airways to more competition at Heathrow airport in London.
"With over 50 percent of BA's profits from 'Americas' routes this is a material exposure," said Andrew Fitchie, an analyst at Collins Stewart in London.
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On the Net:
British Airways, http://www.ba.com
Flybe, http://www.flybe.com
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