BA pre-tax profits soar by 70%

British Airways (BA) has today posted an annual pre-tax profit of £230 million – up £95 million, or 70%, on last year's mark.

The operating profit for the full year to March 31 rose from £295 million to £405 million – of which the fourth quarter saw £32 million.

The company also reported that it had exceeded its two-year Future Size and Shape targets - achieving £869 million in cost savings against a target of £650 million. More than half of the savings (£481 million) arose from a manpower reduction of 13,082 staff reached in March.

The company also said that it had reduced the number of aircraft in service by 39 from 330 to 291.

Chief executive Rod Eddington said that BA had ended the year a stronger business despite the challenges faced by the industry – but there was more to do.

“We continue to improve the customer experience with new products and greater use of technology," he said.

“In the UK, two out of every three BA customers are travelling with an e-ticket. This year, we have installed 191 new self-service kiosks around the network and more than 50% of our shorthaul leisure fares are now sold via ba.com in the UK.

“Our people have done a wonderful job in challenging circumstances. I thank them all.”

Lord Marshall, British Airways chairman, said that the continuing focus on controllable costs "remains key to long-term profitability”.

Operating cashflow for the full year was £1,093 million, down £92 million on last year. Net debt at £4,158 million, fell by £991 million from March 2003 and by £2.4 billion from the December 2001 peak to its lowest level since December 31 1997.

BA has forecasted a 2-3% revenue improvement in the current year. However, the rising price of crude oil has meant that fuel costs are now expected to be £150 million higher this year than last, the company said.

The Board has recommended that no final dividend be paid.

(gmcg)