By Kofi AHOVI, back from London
British Airways (BA), one of the trusted names in the global airline industry, hopes to break even on its revenue for the 2010 fiscal year. It recorded consistent losses for the last two years.
The trend in BA’s passage and cargo traffic continues to be positive with yields up and costs down, which has led to a reduced operating loss for the first half of the year.
Speaking to the Chief Finance Officer, Keith Williams, in a round table interview at BA’s headquarters in Waterside-London, he assured that the company is on track in achieving this goal.
He added that the BA’s focus is on cost control, as the airline grows and continues its quest for permanent structural change across the business.
“Both the airline’s cash and debt position remained strong in the first half year,” he stated.
BA’s cost performance continues to follow last year’s trend with total costs for the second quarter of 2010 reducing by 3.3%.
Total revenue in the period was down 2.3% from 1.983 million pounds in June 2008 to 1.937 million pounds for the same period 2010. Passenger revenue was down 3.4%.
The negative figures were recorded due to the closure of UK airspace, following the Icelandic volcanic eruption and the impact of industrial action.
However, BA’s cargo business saw some strong performance, with revenue increasing by 36.7%. Cargo yield increased by 33.9% driven by demand, mix and fuel surcharges. Cargo volumes, measured in cargo tonne kilometers, increased by 2.1%. Operating costs were down by3.3%, fuel costs were also down by 0.7% and other non-fuel costs reduced by 4.3%.
BA’s cash position at the end of June, this year, was 1.749 million pounds, up 35 million pounds from the end of March 2010. Its net debt position reduced by 37 million pounds to 2.2 million pounds from 2.3 million pounds at the end of March 2010.
During the period, the airline company launched its new global charity partnership with Comic Relief, “Flying Start” with a pledge to raise 8 million pounds by 2013 for vulnerable and disadvantaged children in UK and around the world.
The company, in a partnership with Solena Group, is also establishing Europe’s first sustainable jet-fuel plant and plans to use the low-carbon fuel to power part of its fleet from 2014.
The new fuel would be derived from waste biomass and manufactured in a state-of-art facility that can convert a variety of waste materials, destined for landfill, into aviation fuel.
The airline company has also upgraded its fleet by installing its new first cabin on seven aircrafts and would be replicated across the long haul fleet by the end of next year.
British Airways (BA), one of the trusted names in the global airline industry, hopes to break even on its revenue for the 2010 fiscal year. It recorded consistent losses for the last two years.
The trend in BA’s passage and cargo traffic continues to be positive with yields up and costs down, which has led to a reduced operating loss for the first half of the year.
Speaking to the Chief Finance Officer, Keith Williams, in a round table interview at BA’s headquarters in Waterside-London, he assured that the company is on track in achieving this goal.
He added that the BA’s focus is on cost control, as the airline grows and continues its quest for permanent structural change across the business.
“Both the airline’s cash and debt position remained strong in the first half year,” he stated.
BA’s cost performance continues to follow last year’s trend with total costs for the second quarter of 2010 reducing by 3.3%.
Total revenue in the period was down 2.3% from 1.983 million pounds in June 2008 to 1.937 million pounds for the same period 2010. Passenger revenue was down 3.4%.
The negative figures were recorded due to the closure of UK airspace, following the Icelandic volcanic eruption and the impact of industrial action.
However, BA’s cargo business saw some strong performance, with revenue increasing by 36.7%. Cargo yield increased by 33.9% driven by demand, mix and fuel surcharges. Cargo volumes, measured in cargo tonne kilometers, increased by 2.1%. Operating costs were down by3.3%, fuel costs were also down by 0.7% and other non-fuel costs reduced by 4.3%.
BA’s cash position at the end of June, this year, was 1.749 million pounds, up 35 million pounds from the end of March 2010. Its net debt position reduced by 37 million pounds to 2.2 million pounds from 2.3 million pounds at the end of March 2010.
During the period, the airline company launched its new global charity partnership with Comic Relief, “Flying Start” with a pledge to raise 8 million pounds by 2013 for vulnerable and disadvantaged children in UK and around the world.
The company, in a partnership with Solena Group, is also establishing Europe’s first sustainable jet-fuel plant and plans to use the low-carbon fuel to power part of its fleet from 2014.
The new fuel would be derived from waste biomass and manufactured in a state-of-art facility that can convert a variety of waste materials, destined for landfill, into aviation fuel.
The airline company has also upgraded its fleet by installing its new first cabin on seven aircrafts and would be replicated across the long haul fleet by the end of next year.
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