scotron11
Posts: 1191
Joined: Tue Feb 10, 2004 4:54 pm

BA Posts 26% Profit Increase

Mon Nov 08, 2004 4:38 pm

Bloomberg reports BA had a 26% increase in 2nd quarter income to £123M (US$228.4M) after the carrier cut jobs and costs.

BA has eliminated over 13000 jobs, more than 20% of their workforce, since 2001.

Good for BA. It's a tough fight for any airline out there.

There is also a report from IATA saying that the only way for major carriers to make any money is for oil to drop around $15/Bbl. They also forecast a 5-6% increase in travelers next year.

Hopefully it happens!
 
LHR27C
Posts: 846
Joined: Tue Aug 03, 2004 3:49 am

RE: BA Posts 26% Profit Increase

Mon Nov 08, 2004 7:26 pm

Certainly shows the effectiveness of the Size and Shape cost-cutting measures. There were rumours that Eddington would be leaving, but apparently he plans to stay on at least for the short term. He's put in a lot of work to get BA back into good shape, at least financially, and it would have been a shame to see him leave before his efforts paid off (no pun intended).
Once you have tasted flight, you will walk the earth with your eyes turned forever skyward
 
RCS763AV
Posts: 3662
Joined: Mon Jun 14, 2004 1:22 am

RE: BA Posts 26% Profit Increase

Mon Nov 08, 2004 8:05 pm

Maybe saying that they will quit from BOG and CCS helped!  Angry
 
RRFan
Posts: 73
Joined: Thu Jul 29, 2004 12:03 am

RE: BA Posts 26% Profit Increase

Tue Nov 09, 2004 12:18 am

Good for BA. Everybody knocks them and has plently of criticism for them yet they continue to improve their balance sheet!
For an airline that is very dependant on the North Atlantic routes for its profits it makes these set of results even more encouraging. I am sure there are plenty of majors out there wishing that they had the same results, Delta, UA, Alitalia to name a few.
 
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FlyCaledonian
Posts: 1779
Joined: Mon Dec 29, 2003 6:18 am

RE: BA Posts 26% Profit Increase

Tue Nov 09, 2004 8:32 am

I notice that their debt is now down to £3.3 billion - its lowest level since 1993. BA seems really determined to continue to drive this debt down, which can only bode well for the future. With cost cutting becoming harder to achieve it is a good move to tackle cost controls, and reducing debt brings savings in itself with lower interest payments and more than likely a better credit rating for the carrier. Eddington and co are really working hard to strengthen the foundations at BA, which can only be good for the carrier long term. Yes, there may be criticism by those who hate to see BA drop routes, e.g. CCS and BOG (And who doesn't hate seeing a carrier drop routes?), but BA is opening new markets too, albeit largely shorthaul at present. Plus, BA is making money, despite increasing oil costs. Lets just hope we see an upturn soon and that BA and all is staff can start reaping the rewards from the hard work and sacrifices of the past few years.
Let's Go British Caledonian!
 
boo25
Posts: 275
Joined: Fri Dec 19, 2003 1:03 am

RE: BA Posts 26% Profit Increase

Tue Nov 09, 2004 11:08 am


This is great news, i work at BA , and ever since september 2001 , it has been hard hard work.
Resources and manpower have been cut back in a big way.

Tough measures were taken immediately , and it seems now that these are paying off.
They have set a benchmark maybe , for flying in todays world, and perhaps a couple of airlines out there who even now, have still to tighten their belts , could learn a lesson or two.

Reported on the BBC this morning - BA 3 monthly profits up from £105 million to £220 million year-on-year.

First half year profits stand at £335million (US$620million), up from £60million for the equivalent period last year.

Nice to see some good news at last in the aviation world.  Smile
 
COTXDFW777AA
Posts: 314
Joined: Sun Feb 15, 2004 10:36 am

RE: BA Posts 26% Profit Increase

Tue Nov 09, 2004 11:21 am

wow it is wierd to actually here of airlines making money. I'm used to just being upbeat about airlines that are only losing very little money, let alone an actual profit.
Texas- it's like a whole different country!

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