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| Sunday, 23 May 2004 |
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| News Business Features Editorial
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Good results in a difficult year British Airways today posted a pre-tax profit of o230 million for the full year to March 31, 2004 (2003: o135 million profit). There was a pre-tax profit for the fourth quarter of o45 million compared to the loss of o200 million in 2003. The operating profit for the full year was o405 million (2003: o295 million profit). The operating profit for the fourth quarter was o32 million, o196 million better than last year. Rod Eddington, British Airways chief executive, said: "We ended the year a stronger business despite the challenges faced by our industry. "We have exceeded our two year Future Size and Shape targets. We achieved o869 million in cost savings against a target of o650 million and our manpower reduction at March 2004 was 13,082 against a target of 13,000. "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 per cent of our shorthaul leisure fares are now sold via ba.com in the UK. Lord Marshall, British Airways chairman, said: "Market conditions remain unchanged since our quarter three announcement. Longhaul premium volumes are recovering steadily, while shorthaul premium remains at lower levels. Non-premium volumes are very price sensitive. "We are forecasting a 2-3 per cent revenue improvement in the current year. We expect, small yield declines in the full year will be more than offset by volume. Fuel costs are now expected to be o150 million higher this year than last. The continuing focus on controllable costs remains key to long-term profitability." Group turnover for the full year was o7,560 million, down 1.7 per cent on a flying programme 1.5 per cent bigger in available seat kilometers (ASKs). For the quarter, group turnover was up 10.7 per cent on a flying programme 4.5 per cent higher in ASKs. Revenue passenger kilometres (RPKs) were up 3 per cent for the full year and up by 6.4 per cent for the quarter. Seat factor was up 1.1 points for the full year at 73 per cent - its highest since 1997 and up 1.3 points in the quarter to 70.8 per cent. In the quarter, capacity was up 6.7 per cent in available tonne kilometers (ATKs), net costs were down 2.5 per cent, resulting in a unit costs improvement of 8.6 per cent. Excluding the exceptional Concorde write-off costs in last year's results, net costs increased by 2.5 per cent but unit costs still improved by 3.9 per cent. Operating cashflow for the full year was o1,093 million, down o92 million on last year. Cash inflow, before financing, was o874 million. Net debt at o4,158 million, fell by o991million from March 2003 and by o2.4 billion from the December 2001 peak to its lowest level since December 31, 1997. Gearing is at its lowest level since 1992 at 53.9 per cent. |
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