British Airways reports another record loss FY2010, targets profit before tax break-even in FY2011

British Airways revenue down 4.7% - financial highlights:

• Three months ended 31-Mar-2010:
  • Revenue: GBP1,854 million, -4.7% year-on-year;
  • Total costs: GBP1,999 million, -11.4%;
    • Fuel: GBP559 million, -22.9%;
    • Labour: GBP475 million, -10.2%;
  • Operating profit (loss): (GBP145 million), n/a;
  • Profit (loss) before tax: (GBP189 million), n/a;
  • Passenger traffic (RPKs): -6.2%
  • Passenger yield: +3.2%;
  • Cargo traffic: +5.7%;
  • Cargo yield: +3.0%;
• 12 months ended 31-Mar-2010:
  • Revenue: GBP7,994 million, -11.1% year-on-year;
  • Total costs: GBP8,225 million, -10.7%;
    • Fuel: GBP2,372 million, -20.1%;
    • Labour: GBP1,998 million, -8.9%;
  • Operating profit (loss): (GBP231 million), compared with a loss of GBP220 million in the previous corresponding period;
  • Profit (loss) before tax: (GBP531 million), compared with a loss of GBP401 million in the previous corresponding period;
  • Net profit (loss): (GBP425 million), compared with a loss of GBP358 million in the previous corresponding period;
  • Passenger numbers: 31.8 million, -3.9%;
  • Passenger load factor: 78.5%, +1.5 ppt;
  • Passenger revenue per RPK: GBP 6.30 pence, -8.0%;
  • Passenger revenue per ASK: GBP 4.94 pence, -6.4%;
  • Cargo volume: 760,000 tonnes, -2.2%;
  • Cargo revenue per FTK: GBP 12.12 pence, -16.5%;
  • Total cost per ATK: GBP 38.65 pence, +6.5%;
  • Total cost per RTK: GBP 52.76 pence, +8.1%. [more]

British Airways: "While the outlook is becoming slightly more positive, we urge the Government to reconsider its plans to tax the aviation industry, which already more than pays its way in taxation, isn't used as a convenient source of public sector funding through increased taxes. The industry is vital to the UK economy and the travelling public as the airspace closure indicated yet we have a larger, and increasing, tax burden than other transport sectors. In light of our current financial situation, the board is unable to recommend a dividend this year," Martin Broughton, Chairman. Source: British Airways, 21-May-2010.

British Airways: "Market conditions are showing improvement from the depressed levels in 2009/10. Cargo is showing significant signs of improvement. Passenger revenue is recovering, with increased corporate activity, particularly across the Atlantic; yield is expected to continue to improve from the strengthening position seen in Quarter 4. On the basis of these market improvements we are targeting revenue growth of some 6 per cent and breakeven at the profit before tax level," Company statement. Source: British Airways, 21-May-2010.