BA posts record losses

British Airways has reported a record £401 million (US$640 million) pre-tax loss in the fiscal year 2008 ending 31 March on the back of last year’s record high fuel prices and slumping demand later in the year as the global economy stalled. BA full-year revenue was up 2.7 per cent, but fell 8 per cent […]


British Airways cargo capacity down largest quarterly volume decline pre-tax loss


British Airways has reported a record £401 million (US$640 million) pre-tax loss in the fiscal year 2008 ending 31 March on the back of last year’s record high fuel prices and slumping demand later in the year as the global economy stalled. BA full-year revenue was up 2.7 per cent, but fell 8 per cent in the fourth quarter, the first decline since 2007. The carriers’ cargo division, BA World Cargo reported commercial revenue (flown revenue plus fuel surcharges) of £673 million (US$1.07 billion) for the full year 2008, an increase of 9.4 per cent against the same period last year. Excluding the impact of exchange rate movements, commercial revenues were up 1.1 per cent. Net profit was not revealed for the cargo division. Volumes of 4,638 million cargo tonne kilometres (CTKs) for the full year represent a decrease of 5.2 per cent versus the previous 12 months. Cargo capacity for the same period was down 5.1 per cent. Overall yield (commercial revenue per CTK) increased by 15.4 per cent versus last year, driven by higher levels of fuel surcharge. Excluding the impact of exchange rate movements, yield increased by 6.6 per cent. The fourth quarter in particular saw a 15.5 per cent drop in volumes versus last year – the largest quarterly volume decline on record.