British Airways Reports Record Pre-Tax Profits Amid Passenger and Revenue Growth

Strategic Insights -

British Airways has announced a significant increase in pre-tax profits, soaring to 301 million pounds, nearly two-thirds up on the previous year's profit of 185 million pounds. The airline attributed the improvement to an 8.9 percent increase in passengers, including a 6 percent increase in high-paying business class, first class, and Concorde passengers. The airline's turnover for the year also experienced a substantial growth, reaching 6.303 billion pounds, up by 13.2 percent.

Key Takeaways:

  • Pre-tax profits for the year to March 31 soared to 301 million pounds, representing a nearly two-thirds increase from the previous year's 185 million pounds.
  • The airline credited an 8.9 percent increase in passengers for the improvement, with a 6 percent rise in high-paying business class, first class, and Concorde passengers.
  • Turnover for the year reached 6.303 billion pounds, a 13.2 percent increase from the previous year.
  • After-tax profits of 286 million pounds brought earnings per share to 31.3 pence, compared to 23.1 pence per share last year.
  • The board recommended a final dividend of 7.92 pence a share, bringing total dividends for the year to 11.10 pence.
  • British Airways attributed part of its improved earnings to an estimated 10 million pounds in cost savings and additional revenue from its new alliances with other airlines.
  • The airline reported estimated losses of 10 million pounds from disruption caused by IRA mortar attacks at Heathrow Airport in March.

Statistics:

  • Pre-tax profits: 301 million pounds (up 64.9% from 185 million pounds in the previous year)
  • Turnover: 6.303 billion pounds (up 13.2% from the previous year)
  • After-tax profits: 286 million pounds
  • Earnings per share: 31.3 pence (up from 23.1 pence in the previous year)
  • Final dividend per share: 7.92 pence (total dividend of 11.10 pence)
  • Cost savings: 10 million pounds
  • Disruption losses: 10 million pounds

Sources:

  • "British Airways Announces Record Pre-Tax Profits". May 23.