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British Airways’ 2009 guidance

27-Jan-2009
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British Airways’ 2009 guidance

Tags :UK, British Airways, finance, outlook

Further economic weakness in January and the outlook for February and March combined with the fall in sterling, are impacting British Airways’ outlook for the year ended 31-Mar-09. Revenue guidance for the year remains unchanged as being up at least 4% year on year with yields benefiting from exchange more than offsetting volume declines. Traffic volumes remain in line with the market.

 

However costs are being equally impacted by foreign exchange and non-fuel costs are now expected to rise by 8% year on year compared to our previous guidance of 5%.

Fuel cost guidance is largely unchanged at around GBP3 billion as the lower price of fuel is being offset by a lower fuel hedging benefit for the year and currency impacts.

The results for the third quarter to 31-Dec-08 are expected to show an operating loss of around GBP50 million which is after a GBP56 million non-cash charge relating to the retranslation of certain foreign currency obligations.

At current exchange rates the year to 31-Mar-09 is now expected to be an operating loss of some GBP150 million.

Traffic statistics for January and British Airways’ third quarter results will be announced on 06-Feb-09.



(c) Centre for Asia Pacific Aviation. Date posted: 27-Jan-09

 

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