By Andy McCue, 13 May 2005 15:55
NEWS A company-wide cost-cutting programme has helped British Airways boost its end-of-year profits by a third, with cuts in IT spend playing a key part.
The airline announced operating profits of £540m for the year ended 31 March 2005, compared to £405m the year before.
The profits boost came despite the highly publicised increase in fuel costs, with the group's preliminary results statement crediting various cost savings, including "reduced IT spend".
A technology streamlining and simplification programme led by BA CIO Paul Coby has also played a key part in the airline beating its target of achieving £450m of company-wide savings by £7m.
BA's outgoing CEO, Rod Eddington, said the airline's focus is now on preparing for the move to Heathrow Terminal Five in 2008 and a continuation of the drive for simplification and a competitive cost base.
"Our focus on cost remains key to long-term profitability," he said in a conference call.
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1. anonymous
The cost cutting has only resulted in a serious drop in quality of service. All you seem to get now is lousy service, late flights and miserable staff.