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BA posts Q2 profit of £245m
British Airways has reported second quarter pre-tax profits of £245 million, up 49-fold from the same period last year.
The results were acheived despite a 6.5 percent reduction in group turnover, to £2.1 billion, so were almost entirely attributed to cost savings. The airline reported a reduction in debt of £1 billion since December 2001, its lowest level since September 1999.
BA chief executive, Rod Eddington said: “”Our Future Size and Shape business strategy focuses on reducing costs, removing complexity and restructuring our shorthaul business.”
Mr Eddington said that no interim dividend would be paid.
The airline has reduced staff by 8,180 since August 2001, and says it is on track to lose 10,000 by March 2003 and a further 3,000 by March 2004. BA has also reduced costs in fuel, selling and distribution and engineering, helping it to achieve £350 million of annualised cost savings, the better part of its £450 million target for March 2003.
Lord Marshall, British Airways’ Chairman, said BA was on track for profitability for the full year, “in the absence of war or terrorist action”.
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