British Airways has posted a pre-tax profit of £65 million sterling, up £25 million on last year, for the first quarter to June 30th, 2002.
The operating profit for the first quarter was £158 million, up from £50 million in 2001.
Passenger capacity, measured in available seat kilometres (ASKs), reduced by 14.5 per cent for the quarter. Revenue passenger kilometres (RPKs) were down by 13.8 per cent for the quarter. Seat factor rose 0.6 points to 70.5 per cent in the quarter.
Net costs were also down 14.6 per cent for the quarter, and unit costs fell by 2.6 per cent in the same period. Revenue in the quarter, at £2,052 million, was down 10.7 per cent. Passenger yields were up 5.0 per cent primarily due to improved cabin mix.
According to the company, which released its results this morning, the improved operating results reflect significant reductions in all areas of cost, including manpower, fuel and selling.
Net debt was £5,866 million, down £428 million since the start of the financial year. This is due primarily to repayment of debt and a £182 million increase in cash to £1,401 million.
"We are only six months into a two year structural change programme. Despite very tough market conditions we are delivering on cost efficiencies," Mr Rod Eddington, British Airways’ Chief Executive, said. "We have always said our recovery will be cost driven and not dependant on an upturn in market conditions. That remains true.
The analysts conference call will be webcast at 14.00 BST on www.bashares.com