4th Feb 2005 07:00
British Airways PLC04 February 2005 THIRD QUARTER RESULTS 2004-2005 (unaudited) Three months ended Nine months ended December 31 Better/ December 31 Better/ 2004 2003 (Worse) 2004 2003 (Worse) Turnover £m 1,973 1,891 4.3% 5,924 5,706 3.8% Operating profit £m 110 138 (20.3)% 500 373 34.0% Operating margin % 5.6 7.3 (1.7)pts 8.4 6.5 1.9pts Profit before tax £m 75 125 (40.0)% 410 185 nm Retained profit forthe period £m 49 83 (41.0)% 242 118 nm Net assets at period end £m 2,674 2,398 11.5% 2,674 2,398 11.5% Earnings per shareBasic p 4.6 7.8 (41.0)% 22.6 11.0 nmDiluted p 4.6 7.6 (39.5)% 22.2 11.0 nm nm: Not meaningful GROUP PROFIT AND LOSS ACCOUNT (unaudited) Three months ended Nine months ended December 31 Better/ December 31 Better/ 2004 £m 2003 £m (Worse) 2004 £m 2003 £m (Worse)Traffic RevenuePassenger 1,613 1,614 (0.1)% 4,943 4,910 0.7%Cargo 134 126 6.3% 370 350 5.7% 1,747 1,740 0.4% 5,313 5,260 1.0%Other revenue 226 151 49.7% 611 446 37.0% TOTAL TURNOVER 1,973 1,891 4.3% 5,924 5,706 3.8% Employee costs 553 536 (3.2)% 1,665 1,585 (5.0)%Depreciation and amortisation 167 171 2.3% 500 508 1.6%Aircraft operating leasecosts 28 28 81 92 12.0%Fuel and oil costs 330 224 (47.3)% 859 694 (23.8)%Engineering and otheraircraft costs 123 119 (3.4)% 353 377 6.4%Landing fees and en routecharges 140 132 (6.1)% 426 420 (1.4)%Handling charges, cateringand other operating costs 232 226 (2.7)% 703 719 2.2%Selling costs 115 128 10.2% 374 436 14.2%Accommodation, ground equipment costsand currency differences 175 189 7.4% 463 502 7.8% TOTAL OPERATING EXPENDITURE 1,863 1,753 (6.3)% 5,424 5,333 (1.7)% OPERATING PROFIT 110 138 (20.3)% 500 373 34.0%Share of operating (losses)/profitsin associates (1) 100.0% 30 nm TOTAL OPERATING PROFIT 110 137 (19.7)% 530 373 42.1%INCLUDING ASSOCIATES Other income and charges 1 nmProfit/(loss) on sale of fixed assets andinvestments 1 5 (80.0)% (13) (52) 75.0%InterestNet payable (35) (44) 20.5% (134) (151) 11.3%Retranslation (charges)/creditson currency borrowings (1) 27 nm 26 15 73.3% PROFIT BEFORE TAX 75 125 (40.0)% 410 185 nmTax (23) (38) 39.5% (158) (56) nm PROFIT AFTER TAX 52 87 (40.2)% 252 129 95.3%Non equity minority interest* (3) (4) 25.0% (10) (11) 9.1% PROFIT FOR THE PERIOD 49 83 (41.0)% 242 118 nmRETAINED PROFIT FOR THE PERIOD 49 83 (41.0)% 242 118 nm nm: Not meaningful* Cumulative Preferred Securities OPERATING AND FINANCIAL STATISTICS (unaudited) Three months ended Nine months ended December 31 Increase/ December 31 Increase/ 2004 2003 (Decrease) 2004 2003 (Decrease) TOTAL AIRLINE OPERATIONS (Note 1) TRAFFIC AND CAPACITY RPK (m) 25,999 25,518 1.9% 81,831 78,160 4.7%ASK (m) 35,723 35,098 1.8% 108,512 106,041 2.3%Passenger load factor (%) 72.8 72.7 0.1pts 75.4 73.7 1.7ptsCTK (m) 1,321 1,222 8.1% 3,740 3,313 12.9%RTK (m) 3,921 3,775 3.9% 11,910 11,127 7.0%ATK (m) 5,607 5,493 2.1% 16,968 16,349 3.8%Overall load factor (%) 69.9 68.7 1.2pts 70.2 68.1 2.1ptsPassengers carried (000) 8,428 8,453 (0.3)% 27,538 27,961 (1.5)%Tonnes of cargo carried (000) 232 214 8.4% 661 587 12.6% FINANCIAL Passenger revenue per RPK (p) 6.20 6.32 (1.9)% 6.04 6.28 (3.8)%Passenger revenue per ASK (p) 4.52 4.60 (1.7)% 4.56 4.63 (1.5)%Cargo revenue per CTK (p) 10.14 10.31 (1.6)% 9.89 10.56 (6.3)%Total traffic revenue per RTK (p) 44.55 46.09 (3.3)% 44.61 47.27 (5.6)%Total traffic revenue per ATK (p) 31.16 31.68 (1.6)% 31.31 32.17 (2.7)%Average fuel price before hedging(US cents/US gallon) 156.57 93.18 68.0% 134.08 91.06 47.2% OPERATIONS Average Manpower Equivalent (MPE) 45,888 46,952 (2.3)% 46,116 47,956 (3.8)%ATKs per MPE (000) 122.2 117.0 4.4% 367.9 340.9 7.9%Aircraft in service atperiod end 293 300 (7) 293 300 (7) TOTAL GROUP OPERATIONS FINANCIAL Net operating expenditureper RTK (p) 41.75 42.44 (1.6)% 40.41 43.92 (8.0)%Net operating expenditureper ATK (p) 29.20 29.16 0.1% 28.37 29.89 (5.1)% Note 1: Excludes non airline activity companies, principally, Airmiles TravelPromotions Ltd, BA Holidays Ltd, BA Travel Shops Ltd, Speedbird InsuranceCompany Ltd and The London Eye Company Ltd. CHAIRMAN'S STATEMENT Group Performance Group profit before tax for the three months to December 31 was £75 million;this compares with a profit of £125 million last year. Operating profit - - at £110 million - - was £28 million worse than last year.The operating margin of 5.6% was 1.7 points lower than last year. The reductionin operating profit primarily reflects increased fuel costs (up 47% in thequarter) partially offset by fuel surcharges. Group profit before tax for the nine months to December 31 was £410 million,£225 million better than last year; operating profit - - at £500 million - - wasup £127 million on the same period a year ago. The improvement in operatingprofit primarily reflects improvements in turnover, including fuel surcharges,partially offset by higher costs, including fuel and employment. Cash inflow before financing was £898 million for the nine months, with theclosing cash balance of £1,814 million representing a £144 million increaseversus March 31. Net debt fell by £964 million from March 31 to £3,194 million -- its lowest level since 1993 - - and is down £3.4 billion from the December2001 peak. Turnover For the three month period, Group turnover - - at £1,973 million - - was up 4.3%on a flying programme 2.1% higher in ATKs. This reflected the impact of fuelsurcharges and an increase in cargo revenue of 6.3% with passenger revenuedeclining by 0.1%. Passenger yields were down 1.9% per RPK; seat factor was up0.1 points at 72.8% on capacity 1.8% higher in ASKs. For the nine month period, turnover improved by 3.8% to £5,924 million on aflying programme 3.8% higher in ATKs. Passenger yields were down 3.8% per RPKwith seat factor up 1.7 points at 75.4% on capacity 2.3% higher in ASKs. Cargo volumes for the quarter (CTKs) were up 8.1% compared with last year, withyields (revenue/CTK) down 1.6%. For the nine month period, cargo volumes were up12.9%, with yields down 6.3%. Overall load factor for the quarter was up 1.2 points at 69.9%, and for the ninemonths up 2.1 points at 70.2%. Costs For the quarter, unit costs (pence/ATK) increased by 0.1% on the same periodlast year as a result of a net cost increase of 2.2% on capacity 2.1% higher inATKs. Operating expenditure in the quarter increased by 6.3%. Fuel costs increased by47.3% due to the increase in fuel price net of hedging, partially offset byexchange effects. Employee costs increased by 3.2% as wage awards and increasedpension contributions were only partially offset by manpower reductions. Sellingcosts continue to reduce - - down by 10.2% in the quarter - - due to lowercommissions and continued increase in online bookings. For the nine months, unit costs (pence/ATK) improved by 5.1% on the same periodlast year. This reflects a net cost reduction of 1.5% on capacity 3.8% higher inATKs. Non Operating Items Net interest expense for the quarter reduced by £9 million from last year to £35million, reflecting the impact of higher interest income, and reduced debt. Retranslation of currency borrowings generated a charge of £1 million, includinga £6 million charge due to yen debt, compared to a credit the previous year of£27 million. The retranslation - a non-cash item required by standard accountingpractice - results from the strengthening of the yen against sterling. For the nine month period net interest expense, including the impact of yen debtretranslation, was £108 million, down £28 million on last year. Loss on disposalof fixed assets and investments was £13 million, primarily reflecting the saleof our investment in Qantas at a book loss of £11 million. This compares with aloss on disposal last year of £52 million (which included the £83 million losson sale of DBA). Earnings Per Share The profit attributable to shareholders for the three months was £49 million,equivalent to 4.6 pence per share, compared with last year's profit per share of7.8 pence. For the nine month period, the profit attributable to shareholders was £242million, equivalent to 22.6 pence per share, compared with last year's profitper share of 11.0 pence. Net Debt / Total Capital Ratio Borrowings, net of cash and short-term loans and deposits, were £3,194 millionat December 31 - - down £3.4 billion from the December 2001 peak and down £964million since the start of the year. This reflects cash inflow more thanoffsetting movements in gross debt, together with exchange gains of £70 million.The net debt/total capital ratio reduced by 9.3 points from March 31 to 44.8%.The net debt/total capital ratio including operating leases was down 8.4 pointsfrom March 31 to 50.0%. During the nine months we generated a positive cashflow from operations of £819million. After disposal proceeds, capital expenditure, dividends received,interest payments on our existing debt, and tax, cash inflow was £898 million.This represents a £316 million improvement against last year, primarily due tothe sale proceeds of £427 million from Qantas. Aircraft Fleet Compared to the same period last year the Group fleet in service reduced by 7aircraft to 293, including the delivery of 6 Airbus A321 aircraft during thequarter. Performance Improvement Programmes Progress on delivering the £450 million savings announced in the 2003/5 BusinessPlan (including the £300 million of external spend savings) remains on track forcompletion by March 2005. The £300 million employee cost savings announced inthe 2004/6 Business Plan have been delayed by the extended pay talks. Thesuccessful conclusion of talks with most employee groups has resulted inagreements lasting until October 2006. The focus for the remaining two years ofthe agreement will be to implement working practice changes to deliver £300million of employee cost savings. Alliance Development The British Airways / Iberia Joint Business Agreement, covering flights betweenHeathrow and Madrid and Barcelona, was signed in December 2004. British Airwaysand Iberia began benefit sharing on these routes on January 1, 2005 and havealready announced major improvements to the 2005 summer schedules. Outlook Market conditions for the current financial year remain broadly unchanged. Forthe year to March 2005, the total revenue outlook is slightly better thanprevious guidance with a 3.0-3.5 per cent improvement anticipated (compares withprevious 2-3 per cent). 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, partially offset by fuel surcharges. Our focus remains on reducing both controllable costs and debt. 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. GROUP BALANCE SHEET (unaudited) December 31 March 31 2004 £m 2003 £m 2004 £m Restated RestatedFIXED ASSETSIntangible assets 173 170 168Tangible assets 8,290 8,918 8,637Investments 147 509 531 8,610 9,597 9,336 CURRENT ASSETSStocks 95 72 76Debtors 977 945 1,019Cash, short-term loans and deposits 1,814 1,801 1,670 2,886 2,818 2,765 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEARBorrowings and other creditors (2,659) (2,839) (2,996)Convertible Capital Bonds 2005 (112) (2,771) (2,839) (2,996) NET CURRENT ASSETS / (LIABILITIES) 115 (21) (231) TOTAL ASSETS LESS CURRENT LIABILITIES 8,725 9,576 9,105 CREDITORS: AMOUNTS FALLING DUE AFTER MORETHAN ONE YEARBorrowings and other creditors (4,706) (5,875) (5,374)Convertible Capital Bonds 2005 (112) (112) (4,706) (5,987) (5,486) PROVISION FOR DEFERRED TAX (1,264) (1,115) (1,137)PROVISIONS FOR LIABILITIES AND CHARGES (81) (76) (85) 2,674 2,398 2,397 CAPITAL AND RESERVESCalled up share capital 271 271 271Reserves 2,180 1,905 1,916 2,451 2,176 2,187 MINORITY INTERESTEquity minority interest 11 10 10Non equity minority interest 212 212 200 223 222 210 2,674 2,398 2,397 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited) Nine months ended Year Ended December 31 March 31 2004 £m 2003 £m 2004 £m Profit for the period 242 118 130Other recognised gains and lossesrelating to the period:Exchange and other movements (41) 19 16 Total recognised gains and losses 201 137 146 These summary financial statements were approved by the Directors on February 3,2005. GROUP CASH FLOW STATEMENT (unaudited) Nine months ended Year Ended December 31 March 31 2004 £m 2003 £m 2004 £m CASH INFLOW FROM OPERATING 819 791 1,093ACTIVITIES DIVIDENDS RECEIVED FROM ASSOCIATES 20 25 25 RETURNS ON INVESTMENTS AND SERVICING OF FINANCE (133) (152) (209) TAX 1 (2) (4) CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT (225) (23) 42 ACQUISITIONS AND DISPOSALS 416 (57) (73) Cash inflow before management of liquid 898 582 874resources and financing MANAGEMENT OF LIQUID RESOURCES (140) (239) (198) FINANCING (741) (408) (834) Increase/(decrease) in cash in the period 17 (65) (158) NOTES TO THE ACCOUNTS For the period ended December 31, 2004 1 ACCOUNTING CONVENTION The accounts have been prepared on the basis of the accounting policies set outin the Report and Accounts for the year ended March 31, 2004 in accordance withall applicable United Kingdom accounting standards and the Companies Act 1985. Effective from April 1, 2004 the group applied the provisions of 'UITF Abstract38 - Accounting for ESOP Trusts' and, as a result, the group's investment in ownshares held for the purpose of employee share ownership plans has beenreclassified from fixed asset investments and is now recorded as a reduction inshareholders' equity. Comparative periods have been restated to reflect theadoption of UITF 38. Nine months ended Year Ended December 31 March 31 2004 £m 2003 £m 2004 £m2 RECONCILIATION OF OPERATING PROFIT TOCASH INFLOW FROM OPERATING ACTIVITIESGroup operating profit 500 373 405Depreciation and amortisation 500 508 679Other items not involving the movement of cash 9 11Decrease/(increase) in stocks and debtors 13 41 (23)(Decrease)/increase in creditors (189) (109) 43Decrease in provisions for liabilities and (5) (31) (22)charges Cash inflow from operating activities 819 791 1,093 3 RECONCILIATION OF NET CASH FLOW TOMOVEMENT IN NET DEBTIncrease/(decrease) in cash during the period 17 (65) (158)Net cash outflow from decrease in debt and 745 408 834lease financingCash outflow from liquid resources 140 239 198 Change in net debt resulting from cash flows 902 582 874New finance leases taken out and hirepurchase arrangements made (8) (91) (97)Non cash refinancing 32Exchange movements 70 147 182 Movement in net debt during the period 964 638 991Net debt at April 1 (4,158) (5,149) (5,149) Net debt at period end (3,194) (4,511) (4,158) Three months ended Nine months ended December 31 December 31 2004 £m 2003 £m 2004 £m 2003 £m 4 OTHER INCOMEOther 1 1 Other income and charges represented by:Group 1 1 NOTES TO THE ACCOUNTS (Continued)For the period ended December 31, 2004 Three months ended Nine months ended December 31 December 31 2004 £m 2003 £m 2004 £m 2003 £m5 PROFIT/(LOSS) ON SALE OF FIXED ASSETS ANDINVESTMENTSNet loss on disposal of dba (83)Net loss on sale of investment in Qantas (note 1) (11)Net profit on disposal of other fixedassets and investments 1 5 (2) 31 1 5 (13) (52) Represented by:Group 1 5 (18) (53)Associates 5 1 1 5 (13) (52) Note 1: On September 9, 2004, the group completed the sale of its 18.25% holding inQantas Airways Limited through a book build sale of the shares. The salerealised gross proceeds of £427 million (A$1.1 billion) before tax. The loss ondisposal of £11 million includes the write-back of goodwill of £59 millionpreviously set off against reserves. 6 INTEREST Net payable:Interest payable less amount capitalised 57 62 195 197Interest receivable (22) (18) (61) (46) 35 44 134 151 Retranslation charges/(credits) on currency 1 (27) (26) (15)borrowings 36 17 108 136 Net interest payable represented by:Group 36 17 103 133Associates 5 3 36 17 108 136 7 TAX The tax charge for the quarter is £23 million. This represents £3 million ofoverseas tax and £20 million by way of deferred taxes in the UK. The deferredtax provision on the balance sheet is £1,264 million at December 31, 2004(December 31, 2003: £1,115 million, March 31, 2004: £1,137 million). 8 EARNINGS PER SHARE Basic earnings per share for the quarter ended December 31, 2004 are calculatedon a weighted average of 1,071,112,000 ordinary shares (December 31, 2003:1,069,898,000) and for the nine months ended December 31, 2004, on a weightedaverage of 1,070,587,000 ordinary shares (December 31, 2003: 1,069,893,000) asadjusted for shares held for the purposes of employee share ownership plansincluding the Long Term Incentive Plan. Diluted earnings per share for thequarter ended December 31, 2004 are calculated on a weighted average of1,119,111,000 ordinary shares (December 31, 2003: 1,117,946,000) and for thenine months ended December 31, 2004 on a weighted average of 1,118,597,000ordinary shares (December 31, 2003: 1,069,893,000). The number of shares in issue at December 31, 2004 was 1,082,903,000 (December31, 2003: 1,082,802,000; March 31, 2004: 1,082,845,000) ordinary shares of 25pence each. NOTES TO THE ACCOUNTS (Continued)For the period ended December 31, 2004 December 31 March 31 2004 £m 2003 £m 2004 £m Restated Restated9 INTANGIBLE ASSETSGoodwill 89 95 93Landing rights 84 75 75 173 170 168 10 TANGIBLE ASSETSFleet 6,852 7,338 7,104Property 977 1,173 1,042Equipment 461 407 491 8,290 8,918 8,637 11 INVESTMENTSAssociated undertakings 117 479 501Trade investments 30 30 30 147 509 531 12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEARLoans 95 180 102Finance Leases 105 121 119Hire Purchase Arrangements 291 349 461 491 650 682 Corporate tax 27 17 6Other creditors and accruals 2,141 2,172 2,308 2,659 2,839 2,996 13 BORROWINGS AND OTHER CREDITORS FALLING DUE AFTER MORETHAN ONE YEARLoans 1,064 1,096 1,123Finance Leases 1,762 2,255 1,978Hire Purchase Arrangements 1,579 2,199 1,933 4,405 5,550 5,034 Other creditors and accruals 301 325 340 4,706 5,875 5,374 14 RESERVESBalance at April 1 1,916 1,756 1,756Retained profit for the period 242 118 130Exchange and other adjustments (41) 19 16Goodwill written back on disposals 59 12 14Employee share option exercise through 4investment in own shares 2,180 1,905 1,916 15 The figures for the three months and nine months ended December 31, 2004 and2003 are unaudited and do not constitute full accounts within the meaning ofSection 240 of the Companies Act 1985. The figures for the year ended March 31,2004 have been extracted from the full accounts for that year, which have beendelivered to the Registrar of Companies and on which the auditors have issued anunqualified audit report. INDEPENDENT REVIEW REPORT TO BRITISH AIRWAYS Plc Introduction We have been instructed by the Company to review the financial information forthe three months and nine months ended December 31, 2004, which comprises theGroup Profit and Loss Account, Group Balance Sheet, Group Cash Flow Statement,Group Statement of Recognised Gains and Losses and Notes to the Accounts and wehave read the other information contained in the third quarter results andconsidered whether it contains any apparent misstatements or materialinconsistencies with the financial information. This report is made solely to the Company in accordance with guidance containedin Bulletin 1999/4 'Review of Interim Financial Information' issued by theAuditing Practices Board. To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other than the Company, for our work,for this report, or for the conclusions we have formed. Directors' responsibilities The third quarter results, including the financial information containedtherein, are the responsibility of, and have been approved by the directors.The directors are responsible for preparing the third quarter results inaccordance with the Listing Rules of the Financial Services Authority whichrequire that the accounting policies and presentation applied to the interimfigures should be consistent with those applied in preparing the precedingannual accounts except where any changes, and the reasons for them, aredisclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of Group management and applyinganalytical procedures to the financial information and underlying financial dataand based thereon, assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with United Kingdom Auditing Standards and thereforeprovides a lower level of assurance than an audit. Accordingly we do notexpress an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the three monthsand nine months ended December 31, 2004. Ernst & Young LLPLondon February 3, 2005 UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (US GAAP) INFORMATION The accounts have been prepared in accordance with accounting principlesaccepted in the United Kingdom which differ in certain respects from thosegenerally accepted in the United States. The significant differences are thesame as those set out in the company's report on Form 20-F for the year endedMarch 31, 2004, filed with the SEC. The comparatives have been restated torecognise the excess of the pension accumulated benefit obligation over the fairvalue of the related plan assets, the implementation of FASB Interpretation No.46 - Consolidation of Variable Interest Entities (FIN 46) and UITF Abstract 38.FIN 46 was implemented after the comparative quarter end and resulted in TheLondon Eye Company Limited, in which the group is a primary beneficiary, beingconsolidated as a variable interest entity. In addition, certain leases whichhad been treated as operating leases under US GAAP were reclassified as capitalleases. Under UK GAAP the group adopted UITF Abstract 38 - 'Accounting for ESOP Trusts'effective from April 1, 2004 which resulted in the group's investment in ownshares being reclassified from fixed asset investments to a deduction fromshareholders' equity. Under US GAAP such shares were previously accounted for asa deduction from shareholders' equity. The adjusted net income and shareholders' equity applying US GAAP are set outbelow: Three months ended Nine months ended December 31 December 31 2004 £m 2003 £m 2004 £m 2003 £m Restated Restated Profit for the period as reported in theGroup profit and loss account 49 83 242 118US GAAP adjustments (64) 83 (32) 203 Net income as so adjusted to (15) 166 210 321accord with US GAAP Net income per Ordinary Share as soadjustedBasic (1.4p) 15.5p 19.6p 30.0pDiluted (1.2p) 15.0p 19.3p 29.2p Net income per American Depositary Shareas so adjustedBasic (14)p 155p 196p 300pDiluted (12)p 150p 193p 292p December 31 March 31 2004 £m 2003 £m 2004 £m Restated RestatedShareholders' equity as reported in theGroup balance sheet 2,451 2,176 2,187US GAAP adjustments (439) (199) (413) Shareholders' equity as so adjusted to accord with US 2,012 1,977 1,774GAAP AIRCRAFT FLEET Number in service with group companies at December 31, 2004 On balance Operating leases Changes sheet off balance sheet Total Since Future Aircraft Dec 2004 Sep 2004 deliveries OptionsAIRLINE OPERATIONS (Note 1) Boeing 747-400 57 57Boeing 777 40 3 43Boeing 767-300 21 21Boeing 757-200 13 13Airbus A319 (Note 2) 21 12 33 3 47Airbus A320 9 18 27 3Airbus A321 6 6 6 1Boeing 737-300 5 5Boeing 737-400 (Note 3) 18 1 19Boeing 737-500 10 10Turbo Props (Note 4) 10 10Embraer RJ145 16 12 28 17Avro RJ100 16 16British Aerospace 146 5 5 GROUP TOTAL 206 87 293 6 7 64 Notes: 1. Includes those operated by British Airways Plc and British Airways CitiExpress Ltd. 2. Certain future deliveries and options include reserved delivery positions, and may be taken as any A320 family aircraft. 3. Excludes 2 Boeing 737-400s sub-leased to Air One. 4. Comprises 10 de Havilland Canada DHC-8s. Excludes 2 British Aerospace ATPs stood down pending return to lessor, 3 British Aerospace ATPs sub-leased to Loganair and 12 Jetstream 41s sub-leased to Eastern Airways. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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