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19/05/2003
BA in black after last year's £200m losses
Results posted today have revealed that British Airways has turned around its £200 million loss last year to show huge plus figures following a rationalisation programme.
BA recorded a pre-tax profit of £135 million for the full year to March 31 2003, with operating profit topping £295 million – including an £84 million write down on Concorde. The cumulative effect of the war in Iraq and the spread of the SARS virus saw an operating loss for the fourth quarter up to March of £164 million – £119 million worse than last year.
Group turnover for the full year was £7.68 billion and for the quarter group turnover was down 14.2% after flying 3.6% fewer kilometres. Revenue passenger kilometres were down 5.8% for the full year and down by 7.1% for the quarter.
Excluding exceptional charges, total overall costs for the full year fell 11.9% and total costs were down 7.3% for the quarter.
Operating cashflow for the full year was £1.18 billion, up £319 million on last year. Cash inflow, before financing, was £1.23 billion and net debt fell by £1.14 billion to £5.14 billion, its lowest level since September 1998 – down £1.4 billion from the December 2001 peak.
The company's 'Future Size and Shape' cost-cutting programme has "exceeded targets in all areas including manpower costs, distribution, procurement and information technology," the company said.
However, the FRS17 accounting valuation will report a £1.2 billion deficit for the group pension schemes, and an actuarial review will be completed later this year to determine changes to company contribution levels.
Rod Eddington, British Airways’ chief executive, said: “These are good results in one of the toughest years in living memory. Despite the war and SARS, our people have made a tremendous contribution in delivering all of our first year Future Size and Shape targets.
“However, we cannot be complacent. The timing of economic recovery is not clear. We must deliver further cost efficiencies in the coming year.”
Lord Marshall, British Airways’ chairman, said: “We expect the business environment will continue to be challenging in 2003/04 ahead of an economic recovery.
“Forecasting revenue against a backdrop of continuing global economic weakness, SARS, and Middle East developments is very difficult, however, the outlook is that revenue in quarter one will be lower than last year. Visibility beyond the first quarter is not clear.”
The board has recommended no final dividend.
(GMcG)
BA recorded a pre-tax profit of £135 million for the full year to March 31 2003, with operating profit topping £295 million – including an £84 million write down on Concorde. The cumulative effect of the war in Iraq and the spread of the SARS virus saw an operating loss for the fourth quarter up to March of £164 million – £119 million worse than last year.
Group turnover for the full year was £7.68 billion and for the quarter group turnover was down 14.2% after flying 3.6% fewer kilometres. Revenue passenger kilometres were down 5.8% for the full year and down by 7.1% for the quarter.
Excluding exceptional charges, total overall costs for the full year fell 11.9% and total costs were down 7.3% for the quarter.
Operating cashflow for the full year was £1.18 billion, up £319 million on last year. Cash inflow, before financing, was £1.23 billion and net debt fell by £1.14 billion to £5.14 billion, its lowest level since September 1998 – down £1.4 billion from the December 2001 peak.
The company's 'Future Size and Shape' cost-cutting programme has "exceeded targets in all areas including manpower costs, distribution, procurement and information technology," the company said.
However, the FRS17 accounting valuation will report a £1.2 billion deficit for the group pension schemes, and an actuarial review will be completed later this year to determine changes to company contribution levels.
Rod Eddington, British Airways’ chief executive, said: “These are good results in one of the toughest years in living memory. Despite the war and SARS, our people have made a tremendous contribution in delivering all of our first year Future Size and Shape targets.
“However, we cannot be complacent. The timing of economic recovery is not clear. We must deliver further cost efficiencies in the coming year.”
Lord Marshall, British Airways’ chairman, said: “We expect the business environment will continue to be challenging in 2003/04 ahead of an economic recovery.
“Forecasting revenue against a backdrop of continuing global economic weakness, SARS, and Middle East developments is very difficult, however, the outlook is that revenue in quarter one will be lower than last year. Visibility beyond the first quarter is not clear.”
The board has recommended no final dividend.
(GMcG)
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