QF versus BA.
Growing demand for first and business-class flights and higher ticket prices helped to offset soaring fuel costs to deliver the significant improvement in full-year profits.
Europe’s third-largest carrier also said its short-haul business was profitable for the first time in a decade, after a concerted effort to take on the budget airlines with a range of low fares.
New routes to India and China and strong transatlantic demand have helped to keep BA’s flights full. The airline also improved its seat or load factor, managing to fly fuller aircraft as demand for air travel grows.
Willie Walsh, the chief executive, said that the workforce had also worked hard at keeping costs down. Total costs have risen by 8.2 per cent in the past year, after a 65 per cent increase in fuel costs. Employee costs were also up 3.3 per cent, while aircraft operating lease costs were up 20 per cent.
“Our employees have done a fantastic job in recovering from the illegal action that was taken last summer and they certainly deserve the bonus they have earned,” Mr Walsh said.
Operating margins at the airline nudged up from 7.2 per cent last year to 8.3 per cent this year, triggering a £48 million payout to staff — which will see every employee take home a bonus of £575.
(Geez, I think Geoff needs to get over there and sort this out.....)