Mon, May 19, 2003
BA Profitable Again, But For How Long?
First, the good news. British Airways is expected
Monday to tell government officials in London it returned to
profitability in fiscal 2003 - an iffy proposition in the wake of
9/11, the war on terror, the war in Iraq and SARS.
Now, the bad news: there are a lot of questions about whether
the Crown's official airlines can stay profitable.
Chris Avery, an aviation analyst at JP Morgan, was quoted by the
Financial Times of London over the weekend as saying the annual
figures for BA last year hide "how awful" the airline performed in
Q4. The amount of revenue generated by BA in that quarter fell 7%
because of the war in Iraq and SARS. BA's yield is expected to drop
more than three percent in the new fiscal year.
Not that BA was alone among European-based carriers bleeding red
ink in the past few months. Bloomberg reports Lufthansa's quarterly
deficit doubled in the fourth quarter, up to almost $4.7 million.
In Paris, Air France reported a 2.3% loss in passenger yields.
The Solution: Sell, Baby, Sell
The British aren't taking the forecasted losses sitting down.
Instead, they're trying to lure passengers from around the world
with fire-sale fares. ``The take-up on our fares shows the great
British public still want to travel,'' British Airways' head of
U.K. and Ireland marketing Jayne O'Brien said in the company's
employee newsletter. ``They have just been putting off booking. The
sales are coming in and I'm optimistic we will more than meet our
"They are going to keep their load factors up but at a cost,''
said Commerzbank analyst Dominic Edridge, quoted by Bloomberg.
Commerzbank has now put a "hold'' rating on BA stock. "Their yields
are going to be hit and profits are going to be hard to come
Countries From Around The World Participated In The 38th World Military Parachuting Championship Competition In Indonesia The competition is part of a program administered through >[...]
NBAA/CAN Soiree One of the much-anticipated events of the NBAA conference, being held this year in Orlando.>[...]
A fixed, nozzle shaped opening near the leading edge of a wing that ducts air onto the top surface of the wing.>[...]
“SNC is offering access to crewed or uncrewed space missions." Source: John Roth, vice president of business development for SNC’s Space Systems.>[...]
Get Aero-News Delivered To Your E-Mail We know you, like many of our readers, make it a point to check out the latest news and information daily on Aero-News... but did you know th>[...]