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scotron11
Topic Author
Posts: 1433
Joined: Tue Feb 10, 2004 4:54 pm

BA Profits Up

Fri Aug 05, 2005 4:24 pm

BA recorded a 36% increase in earnings for the 1st quarter as F & J numbers rose.

Operating profit for the 3month period to July was £176M ($333.1), compared to £129M last year.(BBC)
 
ba757
Posts: 2707
Joined: Tue Dec 23, 2003 10:31 pm

RE: BA Profits Up

Fri Aug 05, 2005 4:29 pm

The same BBC article makes it appear that profits have rose because of fuel surcharges! If they indeed have helped profits rise, won't this cause a bit of stir amoung passengers? I can see the LCC loving this, especially FR who already play on BA's fuel surcharges.

Adam

http://news.bbc.co.uk/1/hi/business/4747693.stm

Edit to add link to article

[Edited 2005-08-05 09:30:18]
 
egmcman
Posts: 729
Joined: Sun Jun 26, 2005 6:28 pm

RE: BA Profits Up

Fri Aug 05, 2005 4:29 pm

Good to see some signs of improvemnt at BA.

egmcman
 
mhodgson
Posts: 4673
Joined: Mon Dec 30, 2002 8:47 pm

RE: BA Profits Up

Fri Aug 05, 2005 8:10 pm

I don't think the surcharges are directly responsible for profits at all - I suspect they have just allowed BA to maintain profitability as a result. I suspect there is no change from the surcharges left once the fuel bill is paid, and some fuel still must be paid from a normal ticket price. However, with the surcharges, this means that more from the standard fare is left, which I think is fair enough. BA as a business needs to make a profit, and it is doing.
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ba757
Posts: 2707
Joined: Tue Dec 23, 2003 10:31 pm

RE: BA Profits Up

Fri Aug 05, 2005 10:02 pm

Quoting Mhodgson (Reply 3):
I don't think the surcharges are directly responsible for profits at all - I suspect they have just allowed BA to maintain profitability as a result.

I was thinking about this shortly after I read the article/posted and that is more or less what I started to think. I guess the increased surcharges just helped BA not make a loss on fuel, and stopped fuel costs dipping into profits more than would be reasonable.

I am glad to see BA profitable though, I really am - great airline.

Just as an afterthought, I am sure its perhaps a bit early to tell yet, but do you think the profits rose a little due to a lot of business passengers/pissed off customers who want a decent service that used to be loyal BD customers have started to book BA with the recent changes at BD? Do you think this will help BA's profits rise over the quarter or so?

Adam

[Edited 2005-08-05 15:05:22]
 
richardw
Posts: 3168
Joined: Tue May 08, 2001 3:17 am

RE: BA Profits Up

Fri Aug 05, 2005 10:12 pm

A number of BD passengers switching to BA short haul isn't going to make a big difference to BA, the profit is in long haul F, J and WT+ passengers.
 
Shamrock_747
Posts: 1499
Joined: Thu Mar 28, 2002 3:25 am

RE: BA Profits Up

Sat Aug 06, 2005 5:44 am

A great set of results.  Smile

Good to see yields are up and revenue from premium pax is rising. It's very rewarding to see such good performence despite sky high fuel prices and all the other events during Q1.
 
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Richard28
Posts: 2751
Joined: Thu Aug 14, 2003 5:42 am

RE: BA Profits Up

Sat Aug 06, 2005 7:46 am

Good news for BA - especially considering VS has seen a sharp increase in J traffic as a result of the Upper Class Suite.
 
boysteve
Posts: 890
Joined: Sun Apr 25, 2004 7:02 am

RE: BA Profits Up

Sat Aug 06, 2005 7:48 am

As for the fuel surcharge, I can see this is necessary due to the oil price, but what will annoy customers is seeing an advert (MAN-JFK £199 return for example) and not being able to travel for that fare, due to taxes, surcharges etc. When I see a fare advertised I expect to be able to travel for it. Recently I booked several internal flights in Australia and the fare advertised is what you end up paying in total, BA and other airlines should learn from this, afterall when we go shopping on the High Street we expect quoted prices to include VAT!
 
trekster
Posts: 4319
Joined: Fri Dec 26, 2003 2:47 am

RE: BA Profits Up

Sat Aug 06, 2005 7:57 am

Congrats BA

Hope that means all us guys doin the hard work get a nice litlte bonus nxt year for hitting the targets  Smile

Now that would make my year. I missed this one by a few months  Sad
Where does the time go???
 
WindowSeat
Posts: 1201
Joined: Tue Sep 23, 2003 3:01 am

RE: BA Profits Up

Sat Aug 06, 2005 8:03 am

Quoting Boysteve (Reply 8):
but what will annoy customers is seeing an advert (MAN-JFK £199 return for example) and not being able to travel for that fare, due to taxes, surcharges etc. When I see a fare advertised I expect to be able to travel for it. Recently I booked several internal flights in Australia and the fare advertised is what you end up paying in total....afterall when we go shopping on the High Street we expect quoted prices to include VAT!

With cut-throat competition in Europe and in the US, the first and foremost thing to do is to get the customer look at your website. So, unless all airlines start publishing fares inclusive of taxes and fees it is not in the best interest of one airline to show fares inclusive while the others are "seemingly" cheaper. We face this problem on our branded websites constantly - it is about driving traffic to your website or getting people to consider you as an option and hoping most of it will convert to business. What may work in retail does not necessarily work for another industry. Retail is neither as perishable a product as a airline seat, nor is it that competetive.

cheers

[Edited 2005-08-06 01:04:26]
I'm all in favour of keeping dangerous weapons out of the hands of fools. Let's start with keyboards.
 
mhodgson
Posts: 4673
Joined: Mon Dec 30, 2002 8:47 pm

RE: BA Profits Up

Sat Aug 06, 2005 9:47 pm

Quoting Boysteve (Reply 8):
As for the fuel surcharge, I can see this is necessary due to the oil price, but what will annoy customers is seeing an advert (MAN-JFK £199 return for example) and not being able to travel for that fare, due to taxes, surcharges etc. When I see a fare advertised I expect to be able to travel for it.

Actually, BAs advertised fares do include taxes and charges, at least all the ones I see do. Though the website does not display fares inclusive until the confirmation page.
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