After two years of fighting a relentless economy with fewer and fewer business travelers, British Airways posted a profit. The airlines posted a pre-tax profit of 158 million pounds for Q2 and Q3 combined. The summer quarter saw an even more impressive year on year bounce, with the airline experiencing operating profits of 370 million pounds, against 17 million pounds in losses.
Charles Stanley analyst, Tony Shepard, believes a 500 million pound profit year is not out of the question.
Also Willie Walsh, BA chief executive, sees brighter days in the immediate future. He remarked, key performance indicators “look an awful lot better than they did a year ago”.
Particularly speaking, yields (revenue per seat), rose more than 17 per cent compared to this time last year. This is due to the increase in pricing combined with the increase in first class travelers.
Analysts made the point that the volume in travelers did not increase, actually fell more than 7 per cent to 16.5 million.
Total revenue increased more than 8 per cent to 4.45 billion pounds.
As much as success is spoken about currently in the home office, so is the possibility of strikes happening again. Walsh is feeling optimistic about the Unite union and its ability to put an end to the strike threats.
Even though he and finance director, Keith Williams, are accepting modest pay increases and the crew is being offered only 3 per cent, a strike seems less likely now compared with earlier this year. It is true they are getting pay raises, but they are for different responsibilities within the company.