Good results for BABack to Forum
Anonymous1 Aug 2014
Also covered eruditely by Transtraxman here
Good? Mmm Since end of Feb IAG has fallen from over 450 to below 340.
Apparently linking the very late easter with May holidays provided an abnormally large window to get away and corresponding exceptional seasonal boost for airlines.
Meanwhile Ryanair’s friendly approach looks to have corrected their downturn with a 152% increase in profits.1 Aug 2014
In terms of the profit numbers they are good headline figures (and as you know I am not a BA apologist).
On the share price of course it always depends on the period you look at. Over the last 2 years the price is up over 100% which I suspect most shareholders would be happy with.1 Aug 2014
My data/view relates directly to the subject/OP ie first half 2014.
Some airlines acknowledge the highly unusual Easter for an “Exodus” and corresponding profit boost.
Interestingly in the past I believe BA and others have blamed an early Easter for poor half year results yet when the converse applies they prefer it to be viewed as their good management! Usual spin.
I agree though over 2 years share price is great, however no better than their nearest competitor Air France/KLM – who incidently do not benefit from the luxury of a homebase which precludes growth of the competition together with an affluent fairly captive customer catchment area. However on the other side AF is benefiting from a well performing partner in KLM.1 Aug 2014
Even better than expected results from IAG for the third quarter.
and Buying Business Travel´s comment on the same.”Summer boost for British Airways´ owner” (31-10-14).
Compare that to these two pieces of news from Airwise/Reuters(30-10-14)….
“Lufthansa Cuts Profit Guidance For Second Time”
“Air France-KLM Profit Drops After Pilots’ Strike”
Now the only thing lacking from IAG is a dividend for its shareholders.31 Oct 2014
Further to the AF/KL point, I read that KLM will have to reduce staff by 25% (?), even though KLM is the profitable part of the business. AF are not making any real cuts or changes so seems that as KL staff are “compliant” and not striking they loose their jobs as a result.
Maybe KL should ditch AF and join IAG – that would be a very powerful and complimentary business.31 Oct 2014
In the words of another poster on another forum (Flyerfalk)
“Something must be working.
Despite all the complaints we see posted here, passengers are still booking BA. That is what the numbers are showing. No one is forced to fly BA but they still choose to.”31 Oct 2014
Not out of the woods though.
Short Haul Heathrow legacy (Eurofleet) today voted by 98.6% against accepting revised terms and conditions being sought by management. Turnout of 85.5%
The announcement included –
….The refusal of British Airways to even consider a balanced approach to cost saving has led to this overwhelming result. This was sold to crew as an opportunity to send a message to IAG. This result clearly shows that given the company’s current profitability, the management’s own message surrounding the need for change failed to strike a chord with their own employees and that their message was at best ill received and at worst ill conceived……
As the new terms cannot be forced upon them, no idea what happens next.
Apparently improved crew meals were one of the items being offered as a sop. Yum Yum.31 Oct 2014
@ BigDog. – 31/10/2014 15:13 GMT
I wonder what the revised T&Cs were that IAG’s remote management were seeking. If it included a requirement to at least smile to paying passengers, that would be one immediate improvement on SH services…1 Nov 2014