FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
FURNISHED PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
04 August 2006
BRITISH AIRWAYS Plc
(Registrant's Name)
Waterside HBA3,
PO Box 365
Harmondsworth UB7 0GB
United Kingdom
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule101(b)(1)
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a
Form 6-K if submitted solely to provide an attached annual report to security
holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7)
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other document that the registrant
foreign private issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or legally
organised (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
CONTENTS
1. Press Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorised.
BRITISH AIRWAYS Plc
By: /s/_________________________
Name: Alan Buchanan
Title:Company Secretary
Date: 04 August 2006
INDEX TO EXHIBITS
Exhibit No. Description
1. Press Release
GOOD RESULTS DRIVEN BY STRONG REVENUE
- Pre-tax profit up 57 per cent to GBP195 million
- Operating profit up 20 per cent to GBP211 million
- Operating margin of 9.1 per cent
- Revenue up 12.5 per cent to GBP2.3 billion
- Total costs up 11.8 per cent
British Airways today reported a pre-tax profit of GBP195million (2005: GBP124
million profit) for the first quarter to June 30, 2006.
The operating profit for the first quarter was GBP211 million (2005: GBP176
million profit) delivering an operating margin of 9.1 per cent (2005: 8.5 per
cent).
Operating cashflow was GBP475 million, an increase of GBP126 million from last
year.
Willie Walsh, British Airways' chief executive, said: "These are good results
driven by strong revenue as a result of record seat factors and better cabin
mix. Total costs are up with fuel up 44 per cent at GBP512 million. Employee
costs are up 7 per cent and reflects increased pension costs as a result of the
GBP2.1 billion accounting deficit in our New Airways Pension Scheme
"Our customers continue to see the benefit of investments in products and
services with the introduction of our upgraded in-flight entertainment system.
Our new Club World bed will be launched soon. We have announced new services to
Calgary and an eighth daily service from London Heathrow to New York JFK. We
are also increasing flights from London Heathrow to Sao Paulo in Brazil from
seven to 10 each week from December 3, 2006.
"On shorthaul our new low fares have been a big success. While competition in
this market is brutal I am delighted to see we are winning customers with record
seat factors. We're now even more competitive on price whilst keeping ahead of
the game by offering full service flights, more frequently to more convenient
airports.
"We continue to make steady progress on changes to working practices. We
recently agreed a deal with two further groups of staff including dispatchers
and loaders ahead of our move to Terminal 5. This comes on top of agreements
with our aircraft movements staff, equipment services and ground transport
services and the new single cabin crew fleet agreement at Gatwick."
Martin Broughton, British Airways' chairman, said: "Strong revenue is expected
to continue, supported by significant promotional activity driving seat factors
in all cabins. For the year to March 2007, total revenue is expected to improve
by 6-7 per cent up from previous guidance of 5-6 per cent. Capacity growth in
the first half of the year is expected to be about 4 per cent slowing in the
second half of the year to achieve a full year increase of 2.5 - 3 per cent.
"Fuel costs for the year are now expected to be GBP550 - GBP600 million up on
last year. Costs excluding fuel which were previously forecast flat, are now
expected to be slightly higher this year as pension costs are driving employee
costs up.
"We continue to focus on our move to Terminal 5 in 2008, investing in our
products for our customers and driving a competitive cost base to make our
company fit for growth."
Revenue in the quarter, at GBP2.3 billion, was up 12.5 per cent.
Traffic measured in revenue passenger kilometres (RPKs) was up 7.7 per cent on a
flying programme measured in available seat kilometers (ASKs) up 4.1 per cent.
This delivered seat factors up 2.7 points at a record 78.3 per cent in the
quarter. Yield measured as pence per RPK increased by 6.0 per cent.
Cargo revenue was up 11.6 per cent compared with last year, with yields up 7.2
per cent and increased volumes, measured in cargo tonne kilometers (CTKs), up
4.1 per cent. The flying programme was 3.7 per cent larger in available tonne
kilometers (ATKs).
Total costs were up by 11.8 per cent. The rise was largely driven by a 44 per
cent increase in the cost of fuel and a 7 per cent increase in employee costs
due to increased pension costs, severance and pay awards only partially offset
by manpower reductions. Unit costs were up 7.9 per cent in the same period.
ends
August 4, 2006 066/KG/06
Note to editors:
- British Airways has historically reported passenger and cargo revenue and
related yield figures excluding fuel surcharges. They are now reported
including fuel surcharges.
A conference call to city analysts can be accessed via the internet
www.bashares.com - on Friday, August 4 at 2pm.
Certain information included in this statement is forward-looking and involves
risks and uncertainties that could cause actual results to differ materially
from those expressed or implied by the forward looking statements.
Forward-looking statements include, without limitation, projections relating to
results of operations and financial conditions and the Company's plans and
objectives for future operations, including, without limitation, expected future
revenues, financing plans and expected expenditures and divestments. All
forward-looking statements in this report are based upon information known to
the Company on the date of this report. The Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as a result of
new information, future events or otherwise.
It is not reasonably possible to itemise all of the many factors and specific
events that could cause the Company's forward looking statements to be incorrect
or that could otherwise have a material adverse effect on the future operations
or results of an airline operating in the global economy. Information on some
factors which could result in material difference to the results is available in
the Company's SEC filings, including, without limitation the Company's Report on
Form 20-F for the year ended March 2006.