Manufacturing Industry
British Airways reports results for Q4 and fiscal year ended 31 March
Airline Industry Information, May 13, 2005
AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD
British Airways has reported a decrease in pre-tax profit to GBP5m in the fourth quarter, compared to GBP45m for the same period last year.
The airline has said that the result was mainly due to the high fuel costs, but despite this the full-year pre-tax profit increased significantly. According to British Airways, pre-tax profit for the fiscal year ending 31 March was GBP415m compared to GBP230m for 2003-2004.
The result is better than predicted by analysts and the performance was due to strong demand as well as to cutting costs, according to the departing CEO Rod Eddington. Eddington also said that the 6.9% operating margin is the best that the airline has managed since 1997 and that it would see staff receive 1.25 weeks' pay in bonuses.
According to Reuters, the airline's operating profit for the year of GBP540m was well above the median of forecasts made by eight analysts of GBP506m, while British Airways' survey had set the consensus forecast at GBP518m.
The airline also said that a GBP400m increase in fuel costs was expected for this year, The Associated Press reported. This estimate is higher than the previous estimate of GBP300m.
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