British Airways, Lufthansa and Air France/KLM outlook now variable; whose European strategy is right

Premium Analysis

British Airways has reported an operating profit of GBP875 million for the 12 months ended 31-Mar-08, on revenues up 3.1%, to GBP8,753 million. British Airways’ 10% operating profit margin (FY2007/08, including a 6.6% 4Q operating profit) is indeed outstanding by feeble airline industry standards, where three or four percent returns have generally been regarded as good.

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