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British Airways Warns of Revenue Drop for Next Fiscal Year
Ci sono alcuni passaggi di quest'articolo che mi ricordano e molto alcune pratiche effettuate da company britanniche che preferiscono attività in EU quindi avere profit in euro per poi trasformarli in sterline ... nel caso si parla di dollaro contro sterlina.
British Airways PLC lowered its expectations for revenue growth in the current fiscal year and warned sales would fall next year as it cuts capacity in response to softening demand.
The British flag carrier said that in the current fiscal year, which ends March 31, it expects revenue to rise 3.5%, which compares with an earlier estimate of 4% growth. Next fiscal year, the airline expects revenue to decline 5%.
At its investor day on Thursday, BA said that fuel costs for this year will rise by £950 million ($1.35 billion). However, for the coming fiscal year, the airline expects fuel costs to decline 10%, thanks to hedging at levels lower than the peaks seen in the middle of 2008.
Chief Executive Willie Walsh said BA is making significant progress in its merger talks with Spain's Iberia Líneas Aéreas de España SA, but that the two airlines haven't decided on the governance structure for the possible combined company.
In January, BA warned it would post an operating loss of about £150 million for the current fiscal year amid the economic downturn and the fall in the value of sterling. However, BA said Thursday that sterling's weakness also brought opportunities.
George Stinnes, treasurer and head of investor relations, said Wednesday that the airline would continue to focus on selling tickets in the U.S. rather than the U.K. so it could benefit from the strength of the dollar against the pound. He added that BA's presence in the U.S. was "beneficial" because many economists expect the U.S. economy to be the first to recover from recession.
The airline said it wants to cut nonfuel costs by £220 million in the coming fiscal year and plans a further £80 million reduction the year after. Stripping out severance costs, BA said it targets an operating result for next fiscal year similar to that forecast for the current fiscal year. BA said it would force managers to leave if they underperformed targets for two years running. It added that rewards and share plans would also be linked directly to performance.
Capital expenditure for the next fiscal year is likely to reach £725 million, the carrier said. In its effort to cut costs and become more efficient, BA said it will lower capacity by 2% this summer.
Despite the downturn, the airline said it was holding on to or even gaining market share in the cargo sector, especially in the U.S., U.K. and India. On Wednesday, BA posted a 21% drop in cargo traffic for February, but said it was holding up better than its competitors because its cargo business is smaller and focused on high-end freight, such as perishable goods.
BA's low-cost rival easyJet PLC said Thursday that it carried 6.8% fewer passengers in February than a year earlier. The decline to 3.02 million passengers from 3.24 million passengers in February 2008 largely reflected its decision, announced last summer amid record-high fuel prices, to cut some flights over the winter seasons to preserve margins.
Separately, Australian flag carrier Qantas Airways Ltd. said its January load factor fell to 81.8% from 84.2%, as the number of passengers it carried slipped 0.6% to 3.2 million
British Airways Warns of Revenue Drop for Next Fiscal Year
Ci sono alcuni passaggi di quest'articolo che mi ricordano e molto alcune pratiche effettuate da company britanniche che preferiscono attività in EU quindi avere profit in euro per poi trasformarli in sterline ... nel caso si parla di dollaro contro sterlina.
British Airways PLC lowered its expectations for revenue growth in the current fiscal year and warned sales would fall next year as it cuts capacity in response to softening demand.
The British flag carrier said that in the current fiscal year, which ends March 31, it expects revenue to rise 3.5%, which compares with an earlier estimate of 4% growth. Next fiscal year, the airline expects revenue to decline 5%.
At its investor day on Thursday, BA said that fuel costs for this year will rise by £950 million ($1.35 billion). However, for the coming fiscal year, the airline expects fuel costs to decline 10%, thanks to hedging at levels lower than the peaks seen in the middle of 2008.
Chief Executive Willie Walsh said BA is making significant progress in its merger talks with Spain's Iberia Líneas Aéreas de España SA, but that the two airlines haven't decided on the governance structure for the possible combined company.
In January, BA warned it would post an operating loss of about £150 million for the current fiscal year amid the economic downturn and the fall in the value of sterling. However, BA said Thursday that sterling's weakness also brought opportunities.
George Stinnes, treasurer and head of investor relations, said Wednesday that the airline would continue to focus on selling tickets in the U.S. rather than the U.K. so it could benefit from the strength of the dollar against the pound. He added that BA's presence in the U.S. was "beneficial" because many economists expect the U.S. economy to be the first to recover from recession.
The airline said it wants to cut nonfuel costs by £220 million in the coming fiscal year and plans a further £80 million reduction the year after. Stripping out severance costs, BA said it targets an operating result for next fiscal year similar to that forecast for the current fiscal year. BA said it would force managers to leave if they underperformed targets for two years running. It added that rewards and share plans would also be linked directly to performance.
Capital expenditure for the next fiscal year is likely to reach £725 million, the carrier said. In its effort to cut costs and become more efficient, BA said it will lower capacity by 2% this summer.
Despite the downturn, the airline said it was holding on to or even gaining market share in the cargo sector, especially in the U.S., U.K. and India. On Wednesday, BA posted a 21% drop in cargo traffic for February, but said it was holding up better than its competitors because its cargo business is smaller and focused on high-end freight, such as perishable goods.
BA's low-cost rival easyJet PLC said Thursday that it carried 6.8% fewer passengers in February than a year earlier. The decline to 3.02 million passengers from 3.24 million passengers in February 2008 largely reflected its decision, announced last summer amid record-high fuel prices, to cut some flights over the winter seasons to preserve margins.
Separately, Australian flag carrier Qantas Airways Ltd. said its January load factor fell to 81.8% from 84.2%, as the number of passengers it carried slipped 0.6% to 3.2 million
