This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-11649792
The article has changed 4 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
British Airways in first profit for two years | British Airways in first profit for two years |
(4 months later) | |
British Airways (BA) has reported a half-year profit of £158m ($252m), its first in two years, as the company prepares to merge with Iberia of Spain. | British Airways (BA) has reported a half-year profit of £158m ($252m), its first in two years, as the company prepares to merge with Iberia of Spain. |
The stronger-than-expected results come despite the impact of cabin crew strikes and the Icelandic ash cloud. | The stronger-than-expected results come despite the impact of cabin crew strikes and the Icelandic ash cloud. |
Meanwhile, Iberia has reported a nine-month profit of 53m euros (£46m; $74m). | Meanwhile, Iberia has reported a nine-month profit of 53m euros (£46m; $74m). |
Separately, it has emerged that BA boss Willie Walsh and other executives will receive substantial pay rises after the two airlines merge. | Separately, it has emerged that BA boss Willie Walsh and other executives will receive substantial pay rises after the two airlines merge. |
Bounce back | Bounce back |
Analysts had been expecting a profit figure for BA of about £75m - half of what the airline actually made. | Analysts had been expecting a profit figure for BA of about £75m - half of what the airline actually made. |
Revenues were up 8.4% to £4.4bn, thanks to a particularly strong 39% rise in cargo revenues, according to the airlines official release. | Revenues were up 8.4% to £4.4bn, thanks to a particularly strong 39% rise in cargo revenues, according to the airlines official release. |
Costs were cut by 1.5%. The company said that cost control was something that it continued to focus on. | Costs were cut by 1.5%. The company said that cost control was something that it continued to focus on. |
Performance was much stronger during the latter half of the six-month reporting period. | Performance was much stronger during the latter half of the six-month reporting period. |
Pre-tax profits in the three months to September - which was free of strikes and ash - were £322m. | Pre-tax profits in the three months to September - which was free of strikes and ash - were £322m. |
This more than offset a loss in the previous quarter, which saw 15 days of strikes as well as the eruption of the Eyjafjallajoekull volcano in Iceland in April. | This more than offset a loss in the previous quarter, which saw 15 days of strikes as well as the eruption of the Eyjafjallajoekull volcano in Iceland in April. |
The company also suffered under European air traffic control strikes during the period, though Mr Walsh boasted that despite this, 74% of BA's Heathrow flights and 84% of its Gatwick flights still departed on time. | The company also suffered under European air traffic control strikes during the period, though Mr Walsh boasted that despite this, 74% of BA's Heathrow flights and 84% of its Gatwick flights still departed on time. |
The half-year results mark a complete turnaround from the £292m loss that BA made during the same period in 2009, at the depth of the recession. | The half-year results mark a complete turnaround from the £292m loss that BA made during the same period in 2009, at the depth of the recession. |
Pay packet | Pay packet |
British Airways and Iberia will merge on 21 January. | British Airways and Iberia will merge on 21 January. |
Mr Walsh will become chief executive of the combined company - International Consolidated Airlines Group - and will see his basic pay rise 12% to £825,000 a year. | Mr Walsh will become chief executive of the combined company - International Consolidated Airlines Group - and will see his basic pay rise 12% to £825,000 a year. |
He will also be eligible for performance-related bonuses under the merger deal, that will be capped at twice his basic pay, or £1.65m. | He will also be eligible for performance-related bonuses under the merger deal, that will be capped at twice his basic pay, or £1.65m. |
Mr Walsh's colleague, BA chief financial officer Keith Williams, will see his basic pay rise 43% to £630,000 after his promotion to replace Mr Walsh as BA chief executive within the enlarged company. | Mr Walsh's colleague, BA chief financial officer Keith Williams, will see his basic pay rise 43% to £630,000 after his promotion to replace Mr Walsh as BA chief executive within the enlarged company. |
Mr Williams' bonus will be capped at 1.5 times his basic salary. | Mr Williams' bonus will be capped at 1.5 times his basic salary. |
Air Passenger Duty | Air Passenger Duty |
Mr Walsh used the opportunity of the financial results release to criticise a tax rise on passengers due to kick in next week. | Mr Walsh used the opportunity of the financial results release to criticise a tax rise on passengers due to kick in next week. |
"Excessive taxation puts aviation's social and economic benefits at risk," said the company in its press release. | "Excessive taxation puts aviation's social and economic benefits at risk," said the company in its press release. |
Air Passenger Duty (APD) will increase by up to 55% on some long-haul flights, the company claimed. | Air Passenger Duty (APD) will increase by up to 55% on some long-haul flights, the company claimed. |
"Aviation supports more than 500,000 jobs in the UK and provides the transport links that are vital to the success of UK businesses in a globalised economy." | "Aviation supports more than 500,000 jobs in the UK and provides the transport links that are vital to the success of UK businesses in a globalised economy." |
The UK government says the tax increase will better reflect the cost of carbon emissions by the airline industry. | The UK government says the tax increase will better reflect the cost of carbon emissions by the airline industry. |
"We already meet our carbon costs twice over even before these increases," claimed BA. | "We already meet our carbon costs twice over even before these increases," claimed BA. |
On Thursday, BA's bitter rival Virgin Atlantic also criticised the tax change, claiming it would make family holidays unaffordable for many. | On Thursday, BA's bitter rival Virgin Atlantic also criticised the tax change, claiming it would make family holidays unaffordable for many. |
'Bad tax' | 'Bad tax' |
Easyjet also joined the bandwagon, saying that the rise, to £12 on flights within Europe, means the tax will have increased by 140% since 2007. | Easyjet also joined the bandwagon, saying that the rise, to £12 on flights within Europe, means the tax will have increased by 140% since 2007. |
"APD is a bad environmental tax as there is no relation between the level of the tax and the level of emissions," said the budget airline on Friday. | "APD is a bad environmental tax as there is no relation between the level of the tax and the level of emissions," said the budget airline on Friday. |
"Transfer passengers joining flights departing from the UK pay no tax and those travelling on private jets remain exempt, while ordinary passengers bear the full burden of the tax." | "Transfer passengers joining flights departing from the UK pay no tax and those travelling on private jets remain exempt, while ordinary passengers bear the full burden of the tax." |
Both parties in the coalition promised during the election to switch the duty from a passenger tax into a per-flight tax, in order to reflect the actual environmental impact of the airline industry. | Both parties in the coalition promised during the election to switch the duty from a passenger tax into a per-flight tax, in order to reflect the actual environmental impact of the airline industry. |