p17 city feb13 10/2/09 18:08 Page 17
ttglive.com
city & finance news
BA predicts
In a tailspin: BA results, 2008 vs 2007
£150m loss
(£bn)
8
Revenue
2008
Chris Gray.
6 2007
BRITISH Airways has made a pre-tax nine-month
loss of £70m, and warned its full year deficit will
be more than double that figure.
4
The loss compared with an £816m profit for
Fuel costs
the same period the year before.
Pre-tax
2
The results followed a profit warning last
profit/loss
month, when BA warned it would make a £150m
0
full-year loss compared with a previous estimate
of a small profit.
-2
In the 2007 financial year, BA made a profit of
£875m, delivering a margin of 10%. BA results for nine months ended December 31, 2008, compared with nine months ended December 31, 2007
BA blamed the loss on a 48% increase in fuel
costs, the weak pound and falling numbers of was cancelled out by the huge rise in costs. redundancy programme, and has now
business class passengers as premium traffic Total costs rose by more than £1bn to £7bn, opened negotiations with trade unions over
fell 14%. with fuel costs rising £2.2bn. pay and productivity and would be seeking a
Passenger revenue was up 6.6% to £6.2bn, The airline warned of a “significant cost pay freeze.
helped by price increases of 5%, and economy reduction” as the weak economic environment Douglas McNeill, aviation analyst at Blue
class traffic rose by 1.4%. meant it would struggle to increase revenue. Oar Securities, said BA faced a challenge in
However, overall load factor fell by 2.3 per- The airline has already completed a achieving its aims on pay and productivity
centage points to 78.4% and the rise in revenue management restructuring and a voluntary without provoking industrial action.
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13.02.2009 17
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