British Airways Main Assignment
Autor: Mikki • September 6, 2017 • 3,688 Words (15 Pages) • 797 Views
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The financial analysis clearly shows that BA showcased a good performance for the three consecutive years. Even though there were tough situations due to factors like global recession and political instability BA surpassed all the odds and survived the period. The total revenue of the airline had increased by 8.4% in 2012 and in 2013 it had gone up again by 5.4% the main reason being increased no of passengers. In 2013 the airlines passenger revenue had gone up by 16.1% when comparing with the last two years and this was mainly due to the Olympic and Paralympic games that was held in UK. Since the Airline had made huge investments in expansion programs and due to the high fuel prices the airlines operating cost had also increased by 13.75% in the last two years.
INCOME STATEMENT BRITISH AIRWAYS FOR (2013, 2012, 2011)
2013
2012
2011
CONTINUING OPERATIONS
Passenger revenue
Cargo revenue
10,129
689
9,499
737
8,721
739
Traffic revenue
Other revenue
10,818
603
10,236
591
9,460
527
TOTAL REVENUE
11,421
10,827
9,987
Employee costs
Restructuring
Depreciation, amortisation and impairment
Aircraft operating lease costs
Fuel, oil and emission costs
Engineering and other aircraft costs
Landing fees and en route charges
Handling Charges, catering and other operating costs
Selling Costs
Currency differences
Accommodation, ground equipment and IT costs
2,387
5
722
85
3,755
643
790
1,340
439
28
576
2,345
36
720
98
3,712
625
726
1,213
466
(1)
613
2,153
12
683
73
3,246
543
691
1,052
436
13
567
TOTAL EXPENDITURE ON OPERATIONS BEFORE EXCEPTIONAL ITEMS
10,770
10,553
9,469
OPERATING PROFIT BEFORE EXCEPTIONAL ITEMS
Exceptional items
651
57
274
(41)
518
OPERATING PROFIT
Gain on bargain purchase
Gains on fuel derivatives not qualifying for hedge accounting
Finance costs
Finance income
Net financing expense relating to pensions
Retranslation of currency borrowings
Loss on sale of property, plant and equipment and investments
Share of post-tax losses in associates accounted for using the equity method
Revaluation of convertible bond derivative liability
Net gain/(loss) relating to available-for-sale financial assets
708
17
(176)
13
(45)
4
(65)
(164)
8
233
58
8
(173)
25
(35)
5
(3)
(66)
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