British Airways has this week posted a profit of £1.4bn, with many customers still calling for improvements on experience.
The UK carrier, which is owned by conglomerate IAG, has recorded significant improvements.
Without further ado, let’s get into it…
The Numbers for British Airways…
British Airways recorded an operating profit of £1.4bn, from total revenues of £14.3bn.
Passenger traffic accounted for most of the revenue, coming in at £12.6bn.
Cargo revenue was recorded at £757m, with other revenues marked as £898m respectively.
Such profitability is an improvement from 2022, where £1.1bn in profits were recorded by the airline.
Revenues also bounced considerably, with 2022 being recorded at £3.4bn, reflecting higher demand for travel.
The following costs also bounced considerably at British Airways:
- Fuel, oil costs & emissions charges – From £896m to £3.4bn.
- Employee Costs – From £477m to £2.5bn.
- Supplier Costs – £880m to £5.4bn.
So, in all, not a bad 12 month period for the airline.
On LinkedIn, British Airways CEO Sean Doyle had this to say on the results:
“This morning we announced our full-year results for 2023 where we delivered an operating profit of £1.4bn and continued to see demand for travel recover, flying 90% of our 2019 capacity.”
“I’m extremely proud of what we achieved as a business in 2023 which included unveiling our new uniform, launching 17 new routes and continuing to invest in our customer and colleague experience.”
“Every day across BA our people make outstanding contributions to the business and I am grateful to our colleagues for their unwavering commitment in delivering for our customers.”
“All of us at British Airways remain committed to transforming our airline through a £7bn investment programme, the biggest ever investment in our business, as we work together to create a Better BA for our customers, our investors and our people.”
Calls for Better Service Increasing…
Many on social media have taken the opportunity of this week’s news to reflect on their customer experience.
In particular, the systems that are operated by British Airways outside of the cabin.
Furthermore, this has been acknowledged by the airline, and is part of a £7bn investment to change this.
Obviously, this is a process that will take time, but all eyes will be on how this will work.
In their financial presentation, IAG labelled out how they are going to be investing in the customer experience.
This is all part of their overall strategy to strengthen their “world-class brands”.
Through elevating passenger experience, IAG does believe that the likes of British Airways and others will benefit.
Overall…
In conclusion, British Airways is performing very well financially.
The only path is up for the airline, as they now seek to invest more into the customer experience, but keep profits suitable.
All eyes will be on the airline throughout 2024 to see if any of the proposed changes are made.
But for now, let’s see how the airline gets on in this relatively new year.
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