British Airways has launched its business plan for 2014-18, while announcing its results for the full year. The airline more than doubled its operating profit in 2013. Revenue for the year was up, costs started to improve and the airline’s customers were happy to recommend it. Colleagues will share in a bonus thanks to their hard work.British Airways made an operating profit of £651m* for the full year and made £92m* in the fourth quarter. The airline exceeded its £450m operating profit threshold to open the 2013 bonus, missed its punctuality measures, but met its cost and customer satisfaction metrics. All eligible colleagues will receive a bonus thanks to their hard work.
Revenue was up 5.5 per cent and non-fuel unit costs at constant currency were better than flat for the year.
Executive Chairman Keith Williams said: “It’s been a good year. We more than doubled our operating profit marking a strong turnaround for our company.
“On top of this, we’ve been voted the number one UK consumer Superbrand: a first for any airline or travel business. And we’ve made a strong profit in the fourth quarter, when it’s normally difficult to make money.
“All of this – and more – means we’re now half way towards our target to make a £1.3bn operating profit by 2015, with two years left to double our profit and hit our target.
“Well done and thank you. I am pleased to say your efforts mean we will be paying a bonus in March.”
BA has refreshed its strategy – Our Plan. The plan, which has eight parts, has been designed to carry the airline through the next stage of its journey to become most admired. One of the immediate priorities for 2014 will be to fix the operation.
Keith continued: “Last year was our worst overall operational performance since 2008 so we need to see a marked improvement. A punctual and reliable operation is central to our brand promise and to customer satisfaction and if we don’t sort out the operation it will be hard to meet our operating profit target. Weather and aircraft serviceability were important factors but that’s not what matters to our customers. They expect to get away on time, every time. And its our job – all of our jobs – to make that happen. ”
The airline unveiled a new bonus scheme for 2014. For the first time there are two thresholds that must be met before a bonus can be paid: operating profit and punctuality. The airline will need to be more profitable than 2013 and 76 per cent of flights across the network must depart within 15 minutes.
The size of the bonus would then depend on how it performs against three measures: operating profit, customer advocacy and punctuality.
Keith added: “We need to double our efforts to hit our target of £1.3bn by 2015 while sorting our punctuality, keeping our customers happy and managing our costs.
Our new business plan will power our journey. It’s an ambitious plan that’s designed to fly us past our competitors and enable us to realise our vision.”