BA record profit despite fuel costs
[16th May 2008]
British Airways achieved an operating profit of £875 million despite rising fuel prices for the year ended 31st March and is awarding its staff a bonus, but it remains to be seen how much damage the disastrous opening of T5 has done the airline.
BA staff will share a bonus of £35 million as a result of the airline achieving a 10% operating margin, but chief executive Willie Walsh has declined to take his bonus of £700,000. The operating profit of £875 million compares to £602 million in the previous year, an increase of 45%.
"This is an outstanding financial result for the company despite rising fuel prices and significant economic slowdown in the last six months," says Walsh. "We operate in a volatile market and this year has been no different. Against the background of a progressively tougher trading environment we have continued to work hard on our cost savings to deliver these strong results," he adds.
Fuel costs for the period topped £2 billion, and excluding fuel costs operating costs would have been down 3% instead of the 0.7% actually achieved.
Walsh puts a brave face on the move to Heathrow Terminal 5, despite the impact it has had on BA's reputation. "Despite the difficulties of the opening of Terminal 5 in the first few days, it is now working well and some two million passengers have gone through it and many have enjoyed the experience. Phase 2 of the move of our long haul services into the terminal begins on June 5 and will include our blue riband New York services and flights to seven other destinations," Walsh says.
BA will launch flights to New York JFK from Paris Orly airport on its new airline OpenSkies on 19th June.
Written by: Nick Purdom
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