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Thursday, December 04, 2008
Thursday, December 04, 2008
Latest Procurement News
Posted: Thursday, March 06, 2008, 4:44PM
Margins hit by crude increase at BA
British Airways has warned that it will miss operating margin targets for 2009 as the soaring cost of fuel eats into the company’s margins.
BA announced that its operating margin forecasts of 10 per cent for 2009 would be cut to around seven per cent.
"Fuel will become our single largest cost next year," said Finance Director Keith Williams.
British Airways’ warning comes as crude oil smashed through the $105 per barrel barrier on Thursday morning in Europe after OPEC announced that it was freezing output.
However, Williams insisted that despite BA’s problems, the company was well placed to deal with any slowdown in the global economy.
"We're going into the downturn from a position of real financial strength," he said.
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