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British Airways Main Assignment

Autor:   •  September 6, 2017  •  3,688 Words (15 Pages)  •  169 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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