British Airways reports rise in revenue for 9 months ended Dec-08
09-Feb-2009 |
Airline Code [BAW]
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Tags :UK, British Airways, traffic, finance
British Airways presented (06-Feb-09) its interim management statement for the nine months ended 31-Dec-08. Period highlights: Operating profit of GBP89 million (2007: GBP744 million - restated) down 88%.
· Loss before tax of GBP70 million (2007: Profit GBP816 million - restated)
· Revenue GBP7,046 million (2007: GBP6,634 million - restated) up 6.2%
· Fuel costs up 48.4% to GBP2,244 million
British Airways' chief executive Willie Walsh, said:
"These results have been hit by further economic weakness and the fall in sterling. This has resulted in an operating profit of GBP89 million.
"Revenue up 6.2% received significant support from currency which more than offset volume declines.
"Costs were up by more than GBP1 billion in the period at GBP7 billion reflecting the significantly increased fuel costs and the impact of weak sterling. Fuel costs were up almost 50% at GBP2.2 billion. Non-fuel costs rose by GBP335 million to GBP4.7 billion.
"We have already taken several actions to offset the unprecedented economic conditions. We have increased our sales activity in markets with stronger foreign currencies to benefit from exchange and continue to offer competitive fares in both premium and non-premium cabins. We continue to review every aspect of the business to control costs while at the same time improving the customer experience and operation."
Trading Outlook
Our 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.
Our fuel bill for the year is still expected to be some GBP3 billion and we are well placed to benefit from falling fuel prices going into next year.
Including the impact of restructuring costs and exchange, our non-fuel costs are now expected to rise 8% (5% last guidance).
Our capital guidance remains unchanged at GBP550 million.
Our overall guidance is for an operating loss of around GBP150 million for the year.
(c) Centre for Asia Pacific Aviation. Date posted: 09-Feb-09
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British Airways reports rise in revenue for 9 months ended Dec-08 
