BRITISH Airways chairman Lord Marshall has put his faith in the
cost-cutting Future Size and Shape review following an increase in profit
during the first quarter of its financial year.
Pre-tax profit for the three months to June 30 rose to £65
million, up from £40 million last year. The operating profit for the first
quarter was £158 million, compared to £50 million in 2001.
Revenue in the quarter, at £2,052 million, was down 10.7%.
Passenger yields were up 5.0%.
Lord Marshall said: “The travel market continues to be
subject to considerable global economic and political uncertainty, and is
expected to remain soft for the remainder of the year. As a result, full year
total group revenues are expected to be lower than last year and improvement in
operating results will come principally through cost reductions.”
“We remain confident that the implementation of our Future Size and Shape
programme will deliver the expected efficiencies over this and the next
financial year.”