British Airways announced a half year profit before tax of £158m today, returning to profit for the first time since the recession hit in 2008.
Headlines
Half year profit before tax of £158 million (2009: loss of £292 million)
Half year operating profit of £298 million (2009: loss of £111 million)
Revenue up £345 million due to improved yields
Costs down 1.5 per cent
Quarter 2 operating profit of £370 million (2009: loss of £17 million)
No shareholder dividend
The results demonstrate a steady recovery, driven by a lower cost base and revenue improvement. Introducing permanent structural change to BA’s cost base has enabled it to benefit from the improved economic environment.
In the half year, revenue was up 8.4 per cent. The company’s cash position remains strong.
“We’ve done what we said we would,” explained chief executive Willie Walsh. “We’ve reduced our costs permanently while staying focused on our customers and on a strong operational performance. By doing this, we have driven up our revenue and put ourselves in a position to make the most of the upturn.”
The strong yield performance seen in the first quarter has continued, up 17.2 per cent in the half year. Willie Walsh said: “Yield has been driven by managing our capacity and our pricing; we’re no longer having to offer heavily discounted fares to drive up seat factor.
“The work we’ve done so far to permanently restructure our cost base to make us more competitive means we can now pursue growth that would otherwise not have been profitable.”
fonte BA
Headlines
Half year profit before tax of £158 million (2009: loss of £292 million)
Half year operating profit of £298 million (2009: loss of £111 million)
Revenue up £345 million due to improved yields
Costs down 1.5 per cent
Quarter 2 operating profit of £370 million (2009: loss of £17 million)
No shareholder dividend
The results demonstrate a steady recovery, driven by a lower cost base and revenue improvement. Introducing permanent structural change to BA’s cost base has enabled it to benefit from the improved economic environment.
In the half year, revenue was up 8.4 per cent. The company’s cash position remains strong.
“We’ve done what we said we would,” explained chief executive Willie Walsh. “We’ve reduced our costs permanently while staying focused on our customers and on a strong operational performance. By doing this, we have driven up our revenue and put ourselves in a position to make the most of the upturn.”
The strong yield performance seen in the first quarter has continued, up 17.2 per cent in the half year. Willie Walsh said: “Yield has been driven by managing our capacity and our pricing; we’re no longer having to offer heavily discounted fares to drive up seat factor.
“The work we’ve done so far to permanently restructure our cost base to make us more competitive means we can now pursue growth that would otherwise not have been profitable.”
fonte BA
