water check
4th Aug 2006, 19:08
......remember this when CX managment tries to convince you that 'times are tough'...!
BA PROFITS SOAR DESPITE FUEL COSTS:
Rising passenger numbers have helped British Airways shrug off the rising cost of aviation fuel and post a 57% increase in first quarter profits.
Pre-tax profit for the three months to the end of June hit £195m, compared with £124m in the same period of 2005.
Profits rose despite a 44% rise in fuel costs and a 7% hike in staff costs as a result of BA's pension scheme deficit.
BA said new low fares had boosted short-haul traffic and it had still been able to raise its profit margin.
'Brutal' competition
This rose to 9.1%, compared with the 8.5% margin earned in the first quarter of 2005.
"On short-haul, our new low fares have been a big success," said chief executive Willie Walsh.
"While competition in this market is brutal, I am delighted to see we are winning customers with record seat factors."
But Mr Walsh warned that market conditions were set to get tougher in the second half of the year as airlines became more competitive on prices.
Meanwhile, fuel costs were expected to be £550-600m higher than they were in 2005.
Price-fixing inquiry
However, Mr Walsh said that there were no immediate plans to raise fuel surcharges for customers.
BA PROFITS SOAR DESPITE FUEL COSTS:
Rising passenger numbers have helped British Airways shrug off the rising cost of aviation fuel and post a 57% increase in first quarter profits.
Pre-tax profit for the three months to the end of June hit £195m, compared with £124m in the same period of 2005.
Profits rose despite a 44% rise in fuel costs and a 7% hike in staff costs as a result of BA's pension scheme deficit.
BA said new low fares had boosted short-haul traffic and it had still been able to raise its profit margin.
'Brutal' competition
This rose to 9.1%, compared with the 8.5% margin earned in the first quarter of 2005.
"On short-haul, our new low fares have been a big success," said chief executive Willie Walsh.
"While competition in this market is brutal, I am delighted to see we are winning customers with record seat factors."
But Mr Walsh warned that market conditions were set to get tougher in the second half of the year as airlines became more competitive on prices.
Meanwhile, fuel costs were expected to be £550-600m higher than they were in 2005.
Price-fixing inquiry
However, Mr Walsh said that there were no immediate plans to raise fuel surcharges for customers.