SIR Rod Eddington has delivered his final quarterly results as British Airways chief executive including an 8.5% operating margin, 1.5% short of his goal.
In his five years as BA’s boss, Sir Rod often expressed his desire to achieve a 10% operating margin.
But with less than two months until he relinguishes control to successor Willie Walsh, it is unlikely he will hit his target.
Nevertheless, he said he was “confident Walsh will rise to the challenge” and continue to increase operating margin.
Walsh takes over leadership of BA in late September when Sir Rod returns to Australia to pursue other non-executive board positions.
In a statement today, BA said more premium-class passengers helped it record a $124 million pre-tax profit in the first quarter of this year, despite its fuel costs rising by 37.6%.
Latest figures show a revenue hike of 8.3% to £2.1 billion, and operating profit at £176 million, up from £129 million for the same period in 2004.
Yield per seat increased by 1.5%. Staff costs rose by 5.4% reflecting wage awards and increased pension costs, only partially offset by manpower reductions.
Sir Rod said the fact 93% of BA passengers are using e-tickets on eligible routes had helped the carrier trim its operating costs.
Since April, BA has started regular Shanghai services, announced plans to add more flights to India, fitted Club World flatbeds on four of its Boeing 767s, and refurbished its Heathrow Terminal 1 lounge.