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British Airways

British Airways

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Published by: Lucymaurice on Jun 16, 2011
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10/06/2012

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British Airways
2008/09 Annual Report and Accounts /
75
Financial statements
Ov evi   ew O u u s i  n e s  s  C  o p o a  t  e g ov en a n c  ei  n a n c i   a l   s  t  a  t  em en t  s 
 
76
/
British Airways
2008/09 Annual Report and Accounts
Independent auditor’s report to themembers of British Airways Plc
We have audited the Group and Parent Company financialstatements (the ‘financial statements’) of British Airways Plcfor the year ended March 31, 2009, which comprise the Groupconsolidated income statement, the Group and Parent Companybalance sheets, the Group and Parent Company cash flowstatements, the Group and Parent Company statements of changes in equity and the related notes 1 to 39. These financialstatements have been prepared under the accounting policies setout therein. We have also audited the information in the directors’remuneration report that is described as having been audited.This report is made solely to the Company’s members, as a body,in accordance with Section 235 of the Companies Act 1985.Our audit work has been undertaken so that we might state tothe Company’s members those matters we are required to state tothem in an auditor’s report and for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibilityto anyone other than the Company and the Company’s membersas a body, for our audit work, for this report, or for the opinionswe have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report,the directors’ remuneration report and the financial statements inaccordance with applicable United Kingdom law and InternationalFinancial Reporting Standards (IFRS) as adopted by the EuropeanUnion are set out in the statement of directors’ responsibilities.Our responsibility is to audit the financial statements and the partof the directors’ remuneration report to be audited in accordancewith relevant legal and regulatory requirements and InternationalStandards on Auditing (UK and Ireland).We report to you our opinion as to whether the financial statementsgive a true and fair view and whether the financial statements andthe part of the directors’ remuneration report to be audited havebeen properly prepared in accordance with the Companies Act1985 and, as regards the Group financial statements, Article 4 of the IAS Regulation. We also report to you whether in our opinionthe information given in the directors’ report and business reviewis consistent with the financial statements.In addition, we report to you if, in our opinion, the Company hasnot kept proper accounting records, if we have not received allthe information and explanations we require for our audit, or if information specified by law regarding directors’ remunerationand other transactions is not disclosed.We review whether the corporate governance statement reflectsthe Company’s compliance with the nine provisions of the 2006Combined Code specified for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. Weare not required to consider whether the Board’s statements oninternal control cover all risks and controls, or form an opinion onthe effectiveness of the Group’s corporate governance proceduresor its risk and control procedures.We read other information contained in the annual report andconsider whether it is consistent with the audited financialstatements. The other information comprises only the directors’report and business review, the unaudited part of the report of the Remuneration Committee, the Chairman’s statement, theChief Executive’s review, the Chief Financial Officer’s report andthe corporate governance statement. We consider the implicationsfor our report if we become aware of any apparent misstatementsor material inconsistencies with the financial statements. Ourresponsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standardson Auditing (UK and Ireland) issued by the Auditing PracticesBoard. An audit includes examination, on a test basis, of evidencerelevant to the amounts and disclosures in the financial statementsand the part of the directors’ remuneration report to be audited.It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financialstatements, and of whether the accounting policies are appropriateto the Group’s and Company’s circumstances, consistently appliedand adequately disclosed.We planned and performed our audit so as to obtain all theinformation and explanations which we considered necessary inorder to provide us with sufficient evidence to give reasonableassurance that the financial statements and the part of thedirectors’ remuneration report to be audited are free from materialmisstatement, whether caused by fraud or other irregularity orerror. In forming our opinion we also evaluated the overalladequacy of the presentation of information in the financialstatements and the part of the report of the RemunerationCommittee to be audited.
Opinion
In our opinion:The Group financial statements give a true and fair view, inaccordance with IFRS as adopted by the European Union, of thestate of the Group’s affairs as at March 31, 2009, and of its lossfor the year then ended;The Parent Company financial statements give a true and fairview, in accordance with IFRS as adopted by the EuropeanUnion as applied in accordance with the provisions of theCompanies Act 1985, of the state of the Parent Company’saffairs as at March 31, 2009;The financial statements and the part of the report of theRemuneration Committee to be audited have been properlyprepared in accordance with the Companies Act 1985 and,as regards the Group financial statements, Article 4 of the IASRegulation; andThe information given in the directors’ report and businessreview is consistent with the financial statements.
Ernst & Young LLP
Registered auditorLondonMay 21, 2009
 
British Airways
2008/09 Annual Report and Accounts /
77
Group consolidated income statement
For the year ended March 31, 2009
 Ov evi   ew O u u s i  n e s  s  C  o p o a  t  e g ov en a n c  ei  n a n c i   a l   s  t  a  t  em en t  s 
Group
2009
2008
£ millionNote
Restated
Traffic revenue
Passenger
7,836
7,600
Cargo
673
615
8,509
8,215
Other revenue
483
543
Revenue
3
8,992
8,758
Employee costs (excluding restructuring)
8
2,193
 2,165
Restructuring
4
78
1
Depreciation, amortisation and impairment
4
694
692
Aircraft operating lease costs
73
68
Fuel and oil costs
2,969
 2,055
Engineering and other aircraft costs
510
 451
Landing fees and en route charges
603
528
Handling charges, catering and other operating costs
1,021
977 
Selling costs
369
 361
Currency differences
117
6
Accommodation, ground equipment and IT costs
585
576
Total expenditure on operations
9,212
7,880
Operating (loss)/profit
4
(220)
878
Fuel derivative (losses)/gains
(18)
12
Finance costs
9
(182)
(175)
Finance income
9
95
111
Net financing (expense)/income relating to pensions
9
(17)
70
Retranslation charges on currency borrowings
9
(59)
(11)
Profit on sale of property, plant and equipment and investments
10
8
14
Share of post-tax profits in associates accounted for using the equity method
20
4
 26
Netcharge relating to available-for-sale financial assets
11
(12)
(3)
(Loss)/profit before tax(401)
922
Tax
12
43
(194)
(Loss)/profit after tax from continuing operations(358)
728
Loss from discontinued operations (after tax)
5
(2)
(Loss)/profit after tax(358)
726
Attributable to:Equity holders of the parent
(375)
712
Minority interest
17
14
(358)
726
Earnings/(loss) per share
Continuing operations:Basic
13
(32.6)p
62.1p
Diluted
13
(32.6)p
61.6p
Discontinued operations:Basic
13
(0.2)p
Diluted
13
(0.2)p
Total:Basic
13
(32.6)p
61.9p
Diluted
13
(32.6)p
61.4p

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