* Carrier back in the black as half-year revenue soars by almost 40%
British Airways (BA) has reported a half-year profit of £158 million (US$253m) – its first in two years – on the back of a year-on-year cargo revenue increase of almost 40%.
The carrier’s half-year profit compares with a loss of £292 million at the same point last year.
BA also reported that its costs had fallen 1.5% on last year and revenues were up 8.4% to £4.4 billion.
The carrier said its cargo business (BA World Cargo) continued to see strong performance, with revenue increasing 39.4%, driven by yields recovering from the market low point of last year, as well as strong premium product performance and higher fuel surcharges.
Cargo volumes, measured in freight tonne kilometres, increased by 2.4%.
BA CEO Willie Walsh said: “Our concerted efforts to introduce permanent structural change across the airline have led to a reduction in non-fuel costs and a return to profitability.
“Revenue has increased, driven primarily by yield improvements, and, while fuel costs have risen, they are in line with our expectations.
“At a strategic level, we launched our transatlantic joint business with American Airlines and Iberia, having received regulatory approval in the summer. Also, we expect to complete our merger with Iberia in January.”
Walsh added: “Despite disruption caused by numerous air traffic control strikes across Europe this summer, 74% of our Heathrow flights and 84% of our Gatwick flights departed on time, significantly outperforming our major competitors.”
Fuel costs were up 2.4% and other non-fuel costs reduced by 3.1% or 4% excluding the impact of exchange, he said.