4th Feb 2005 07:00
British Airways PLC04 February 2005 THIRD QUARTER RESULTS • Pre-tax profit of £75 million for the quarter • Operating profit of £110 million • Unit costs up 0.1 per cent • Operating margin at 5.6 per cent • Net debt at £3.2 billion British Airways today reported a pre-tax profit of £75 million for the threemonths to December 31, 2004 against a pre-tax profit of £125 million for thesame period last year. The three month pre-tax figures took the results for the nine months to a profitof £410 million (2003: £185 million profit). Operating profit for the quarter was £110 million, (2003: £138 million). Forthe nine months, operating profit was £500 million (2003: £373 million). Rod Eddington, British Airways' chief executive, said: "These are respectableresults in a quarter where fuel costs increased by £106 million (47.3 per cent).Our focus remains on reducing controllable costs and debt whilst continuing toinvest in our products. For example, we have taken delivery of six Airbus A321aircraft and next month we will start further improvements to our Club Worldflat beds." Martin Broughton, chairman, said: "Market conditions for the current financialyear remain broadly unchanged. For the year to March 2005, the total revenueoutlook is slightly better than previous guidance with a 3.0-3.5 per centimprovement anticipated. All market segments remain price sensitive and yielddeclines are expected to continue. "Fuel costs net of hedging are still expected to be about £245 million more thanlast year. Passenger and cargo fuel surcharges partially offset this increase." Group turnover for the third quarter at £1,973 million was up 4.3 per cent on aflying programme 2.1 per cent larger, as measured in available tonne kilometres(ATKs). This reflected the impact of fuel surcharges and an increase in cargorevenue of 6.3 per cent with passenger revenue declining by 0.1 per cent. Passenger yields, measured in revenue per revenue passenger kilometres (RPKs),were down 1.9 per cent; seat factor was up 0.1 points at 72.8 per cent oncapacity 1.8 per cent higher in available seat kilometres (ASKs). For the nine month period, turnover improved by 3.8 per cent to £5,924 millionon a flying programme 3.8 per cent higher in ATKs. Passenger yields were down3.8 per cent with seat factor up 1.7 points at 75.4 per cent on capacity 2.3 percent higher in ASKS. For the quarter, unit costs increased by 0.1 per cent on the same period lastyear as a result of a net cost increase of 2.2 per cent on capacity 2.1 per centhigher in available tonne kilometres (ATKs). Operating expenditure in the quarter increased by 6.3 per cent primarily due toincreased fuel costs (up 47.3 per cent) and employee costs (up 3.2 per cent).Selling costs continue to reduce - down by 10.2 per cent in the quarter - due tolower commission payments to travel agents and growth in online bookings. Borrowings, net of cash, short term loans and deposits, were £3,194 million atDecember 31, down £3.4 billion from the December 2001 peak and down £964 millionsince the start of the year. Cargo volumes for the quarter, measured in cargo tonne kilometres (CTKs), wereup 8.1 per cent compared with last year and yields, measured in cargo revenueper CTK, down 1.6 per cent. For the nine month period, cargo volumes were up12.9 per cent, with yields down 6.3 per cent. Overall load factor for the quarter was up 1.2 points at 69.9 per cent. For thenine months, overall load factor was up 2.1 points at 70.2 per cent. Operating margin for the quarter of 5.6 per cent was 1.7 points lower than lastyear. Ends February 4, 2005 009/KG/2005 A webcast of British Airways' conference call to city analysts can be accessedvia the internet www.bashares.com - on Friday, February 4 at 2pm. Certain information included in these statements is forward-looking and involvesrisks and uncertainties that could cause actual results to differ materiallyfrom those expressed or implied by the forward looking statements. Forward-looking statements include, without limitation, projections relating toresults of operations and financial conditions and the company's plans andobjectives for future operations, including, without limitation, discussions ofthe company's Business Plan programmes, expected future revenues, financingplans and expected expenditures and divestments. All forward-looking statementsin this report are based upon information known to the company on the date ofthis report. The company undertakes no obligation to publicly update or reviseany forward-looking statement, whether as a result of new information, futureevents or otherwise. It is not reasonably possible to itemise all of the many factors and specificevents that could cause the company's forward looking statements to be incorrector that could otherwise have a material adverse effect on the future operationsor results of an airline operating in the global economy. Information on somefactors which could result in material difference to the results is available inthe company's SEC filings, including, without limitation the company's Report onForm 20-F for the year ended March 2004. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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