BA profits soar to £833 million
Updated on 16 May 2008
British Airways has announced annual pre-tax profits of £883 million.
But the airline warned it was braced for a "challenging" year ahead due to high oil prices and the troubled move to Heathrow Terminal 5.
The 45 per cent rise on the previous year's bottom line saw BA meet its 10 per cent profit margin target which triggers a £35 million bonus pool for the airline's 42,000 staff. It is also paying its first dividend since 2001.
Chief executive Willie Walsh will not be taking his bonus because of the Heathrow fiasco.
He said: "I am not getting a bonus. I felt it would be inappropriate in the context of the very disappointing opening of Terminal 5 in March.
"So despite the fact it was a record year in terms of our financial performance, I advised the chairman that I thought it would be inappropriate. I have made it very clear I was very disappointed at the way we had performed."
Mr Walsh, who came under pressure to quit following the T5 fiasco, was more upbeat about the results for the last financial year.
He said: "This is an outstanding financial result for the company despite rising fuel prices and significant economic slowdown in the last six months.
"We have achieved our goal of a 10 per cent operating margin which I am delighted has triggered the reward scheme for our staff. For our shareholders too, it signals the welcome return of a dividend - the first since 2001.
"Delivering 10 per cent has not been easy, but we have achieved it by remaining focused on our strategy for the last six years."
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