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13/05/2005
BA reports full-year profits jump by 80%
British Airways has announced a pre-tax profit of £415 million, an 80% jump in profits on the previous full year.
But the company's strong performance was marred by a pre-tax profit in the fourth quarter of £5 million which was down on £45 million profit for the period in 2004. This was attributed to an 18% rise in fuel costs and increased engineering-related costs in the period.
British Airways Chief Executive Rod Eddington said: "These are good results driven by continued cost control and strong demand for our products".
He added: "We have exceeded our 2003-2005 business plan savings of £450 million by £7 million. This included reducing external spend by £300 million and improving our use of technology. During the year we have substantially improved our online capability to improve customer service and increase the airline's efficiency."
BA's use of technology, such as self-service check-in kiosks and a sophisticated online booking management facility, has helped the company shed 13,000 employees and trim operating costs. The company reported an improved operating margin that had increased to 6.9%.
This improved position has allowed BA to reduce borrowings and decrease net debt to below £2.9 billion.
However, fuel costs, while offset by hedging, are now expected to be about £400 million more than last year, up from £300 million due to recent price rises.
(SP)
But the company's strong performance was marred by a pre-tax profit in the fourth quarter of £5 million which was down on £45 million profit for the period in 2004. This was attributed to an 18% rise in fuel costs and increased engineering-related costs in the period.
British Airways Chief Executive Rod Eddington said: "These are good results driven by continued cost control and strong demand for our products".
He added: "We have exceeded our 2003-2005 business plan savings of £450 million by £7 million. This included reducing external spend by £300 million and improving our use of technology. During the year we have substantially improved our online capability to improve customer service and increase the airline's efficiency."
BA's use of technology, such as self-service check-in kiosks and a sophisticated online booking management facility, has helped the company shed 13,000 employees and trim operating costs. The company reported an improved operating margin that had increased to 6.9%.
This improved position has allowed BA to reduce borrowings and decrease net debt to below £2.9 billion.
However, fuel costs, while offset by hedging, are now expected to be about £400 million more than last year, up from £300 million due to recent price rises.
(SP)
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