in $27 million profit
p. 91 · Read in the full issue
British Airways turns in $27 million profit
A profit of $A26.9 million for the year ended March 31, 1974, was an nounced by the Chairman of British Airways, Mr David Nicolson, at a conference in London following the publication of the airline’s annual report and accounts. The profit figure compared with SAB.4 million for the previous year, Mr Nicolson said.
The profit before interest and taxation was 5A98.6 million, an in crease of 79.6 per cent on British Airways’ first year of operation and represented a return on assets of 11.7 per cent compared with 6.7 per cent in 1972/73.
The report, however, warns of the growing difficulties the airline industry is experiencing. Fuel prices and other rising costs began to bite during the year under review and British Airways has assumed in its long term plans that it will have to pay substantially increased fuel prices.
“As a consequence we cannot ignore the huge uncertainty that hangs over the scale of our future activities,”
Mr Nicolson said, “but the problem is not solely one for British Airways.
It is one that affects all carriers.
“We believe the future of our enter prise depends on being able to com pete effectively and profitably in all sectors of the air travel market. We intend to maintain our economic position despite inevitable changes that will occur in the general world pattern of air transport.”
The year under review was the first in which the centralised management had controlled the companies within the group and the report goes on to say that the profit justified the creation of British Airways, which was formed from the merger of BOAC and BEA.
It meant that British Airways was able to pay the British Government 5A9.9 million on public dividend capital.
Despite a good year, Mr Nicolson forecast a loss for 1974/75 of 5A22.7 million which could rise to as much as SA29 to SA32 million.
“However,” he said, “depressing as the immediate future may appear to be, it is perhaps some consolation that we are in better financial shape than many of our competitors,”