Trading Statement

RNS Number : 2514M

British Airways PLC

26 January 2009

 



Guidance for 2009

Further economic weakness in January and the outlook for February and March combined with the fall in sterling, are impacting our outlook for the year ended 31 March 2009.

Revenue guidance for the year remains unchanged as being up at least 4% year on year with yields benefiting from exchange more than offsetting volume declines. Traffic volumes remain in line with the market.

However costs are being equally impacted by foreign exchange and non-fuel costs are now expected to rise by 8% year on year compared to our previous guidance of 5%.

Fuel cost guidance is largely unchanged at around £3 billion as the lower price of fuel is being offset by a lower fuel hedging benefit for the year and currency impacts.

The results for the third quarter to 31 December 2008 are expected to show an operating loss of around £50 million which is after a £56 million non-cash charge relating to the retranslation of certain foreign currency obligations.

At current exchange rates the year to 31 March 2009 is now expected to be an operating loss of some £150 million.

Traffic statistics for January and our third quarter results will be announced on February 6 2009.

Certain information included in these statements 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, discussions of the Company's Business Plan programs, 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. Fuller information on some factors which could result in material difference to the results is available in the company's Annual Report for the year ended 31 March 2008, which is available on www.bashareholders.com.

Investor Relations, Waterside (HAA3), PO Box 365, Harmondsworth, UB7 OGB:

Tel: [phone]

 

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