British Airways reports return to profitability in 1HFY2011

British Airways revenue up 8% - financial highlights for the six months ended 30-Sep-2010:

• Revenue: GBP4,447 million, +8.4% year-on-year;
• Operating costs: GBP4,149 million, +1.5%;
  • Fuel: GBP1,257 million, -2.4%;
  • Labour: GBP1,003 million, +2.7%;
• Operating profit: GBP298 million, compared with a loss of GBP111 million in p-c-p;
• Profit before tax: GBP158 million, compared with a loss of GBP292 million in p-c-p;
• Net profit: GBP107 million, compared with a loss of GBP217 million in p-c-p;
• Passenger numbers: 16.5 million, -7.3%;
• Passenger load factor: 79.2%, -1.4 ppt;
• Cargo volume: 375,000 tonnes, -0.5%;
• Passenger revenue per ASK: GBP 5.56 pence, +15.1%;
• Passenger yield: GBP 7.02 pence, +17.2%;
• Cargo yield: GBP 15.26 pence, +36.1%;
• Operating cash flow: GBP554 million, +544%;
• Cash and cash equivalents: GBP550 million, +31.3%. [more]

British Airways: "Our concerted efforts to introduce permanent structural change across the airline has led to a reduction in non-fuel costs and a return to profitability. Revenue has increased, driven primarily by yield improvements and, while fuel costs have risen, they are in line with our expectations," Willie Walsh, CEO. Source: British Airways, 29-Oct-2010.

British Airways: "While positive, the economic environment continues to be subject to increase in APD is unhelpful. We continue to focus on managing our costs," Company statement. Source: British Airways, 29-Oct-2010.