Financial Analysis of British Airways

4. Analysis 4.1 Revenue From the graph, Overall Revenue Trend in appendix C we can see that during the period 2001 ? 2006 taxs have fallen by 8.2%, from £9,278m to £8,515m. Revenues ferine for 3 consecutive years; at the end of 2004 revenues were £1,718m or 19% lower than in 2001. The following years cut revenues rise £955m or 13% above this. Let us now consider these changes in more detail. British Airways earns revenue from 3 published sources: Passenger services, cargo services and ?other, being planetaryly fuel surcharges. Revenues fell their sharpest during y/e 31 demoralize 2002, by 10.1% or £938m. The atrocities of the terrorist attacks in New York on family 11 hit the airline hard in the third quarter of trading. In addition there was a general economical downturn and ?foot and mouth disease in the UK. These factors guide to a reduction in passenger numbers of 10.0% or 4.5m (from 44.5m to 40.0m). Consequently passenger revenues made up 81.8% of the decrease. Decreases were experienced crosswise all geographical regions except for ?Africa, the Middle East and Indian Sub-continent. any(prenominal) falls in this ara were offset by increase traffic to the rapidly developing economies of Indian cities. The company also was experiencing change magnitude pressure from the ?no-frills carriers.

In his annual report narration the chief executive commented Our shorthaul business must adapt to appropriate a strong competitive response to the no-frills carriers ? and are now giving business travellers and holiday makers lower fares? (Rod Eddington, May 2002) During 2003 revenues fell again, this time by 7.8% or £652m. In his Q4 presentation to investors, manufacturing business Marshall noted that this was a period of unprecedented clog for an already weakened transport industry (Lord Marshall, May 2003). In the front half of the year the company were still feeling the encroachment of September 11 together with an acceleration of the worldwide economic downturn. The threat and actual war... If you want to get a salutary essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.