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BA announces £200m losses
British Airways has revealed huge losses after a year of “sacrifice and hardship”.
The airline announced a pre-tax loss of £200 million for the full year to March 31, the worst results since it was privatised 15 years ago. In 2001, the airline recorded a £150 million profit.
The airline also announced a pre-tax loss for the fourth quarter of £85 million, compared with a £65 million loss in 2001.
The operating profit for the fourth quarter was £35 million, £96 million better than last year, with a full year operating loss of £30 million, all excluding exceptional restructuring costs of £80 million. In 2001, operating profit was £380 million.
Passenger capacity, reduced by 12.6 per cent for the quarter and 12.4 per cent for the full year.
Revenue passenger kilometres (RPKs) were down by 5.9 per cent for the quarter and 13.7 per cent for the full year.
British Airways said their actions taken in response to the global economic slowdown earlier in the year and decisions immediately after September 11 have driven the improved quarterly cost performance. It added that the effect of the company’s Future Size and Shape review announced in February will be realised during this financial year and the next.
Rod Eddington, British Airways’ Chief Executive, said: “We have had to take a series of tough decisions this year to protect British Airways for the long term. It has meant sacrifice and hardship for our people.
“The market is expected to remain soft but the swift and decisive actions we have taken show we are determined to return the business to acceptable levels of profitability. The cost reductions have helped to deliver better than expected year end results. The quarterly improvement is due to the dedication of staff in delivering cost efficiencies and high standards of customer service during these difficult times.”
“Throughout the year ahead, our drive on costs will continue along with tight capacity management and cost control. These are key to our ‘Future Size and Shape’ recovery strategy.”
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