British Airways Posted Better-Than-Expected Profits in 2004

British Airways (BA) made better than expected profits in the past year, amid fuel price increases and intense competition in the airline sector. In the last set of financial results to be delivered by the outgoing chief executive, Rod Eddington, BA revealed a pre-tax profit of £415 million ($758 million) for the year to March 31, compared with £230 million ($420 million) the previous year.

The BA results show that full-service airlines can operate profitably and raises questions about why so many American airlines are filing for bankruptcy protection at the same time.

The success has triggered a staff bonus scheme and all BA employees will be rewarded with a bonus cash payment for the first time since 1998.

Higher fuel costs have blighted British Airways´ prospects for the coming year, in line with airlines all over the world, and the carrier is maintaining its fuel surcharge on ticket sales.

The main focus of BA´s next three-year business plan is on investing in new products and driving down further the airline´s costs, as it prepares also for the move to the new Terminal Five under construction at London Heathrow and due to open in 2008.

The airline has made significant savings by embracing new technology and simplifying ticketing procedures for passengers.