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IMPACT OF COVID-19 ON
BRITISH AIRWAYS
Presented by Group C
Sabana Sait         KYS19Y065
Reesha Fazly KYS18Y136
Sathya Aruppala             KYM19Y122
P.W.G.K.C Samarakoon     KYS19Y012
Shezah Nizamdeen  KYS19Y013
Tharindu D.Weerasinghe   KYS19Y004
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The Airline Industry

• Plays an important role in establishing a global economy

• Influences various related industries (tourism & aircraft

manufacturing)

• Offers employment in the aviation as well as related sectors

• Industry loss $137.7 billion (2020) & estimated industry loss

was $ 51.8 billion (end of 2021)

• Passengers increased in the pre-Covid period of 2020 due to

low cost carriers, growth of the global middle class and
growth in airport infrastructure spending

• After the pandemic, the number of passengers amounted to

only 2.2 billion (a fall of 50% compared to 2019)
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British Airways
Formed on 31st March 1974 through a merger of British Overseas
Airways Corporation, British European Airways, Northeast Airlines
and Cambrian Airways

Headed by the CEO Sean Doyle and headquartered Harmondsworth

Second largest British airline covering 70 countries and 160

destinations with a fleet of 280 aircrafts

Revenue in 2020 amounted to ₤ 3.9 million (39 million customers

annually)

Total workforce of 40,000 employees as of 2020

Major competitors are Singapore Airlines, Cathay Pacific and Virgin

Group
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Challenges Faced by the

British Airways
• Impact on the revenue and operating loss

• Fall in the liquidity position

• Imposed Travel Restrictions

• Reduction in operations

• Employee and customer safety

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Analysis of the Financial and Business Strategies
used to overcome the Challenges

Financial Strategies Business Strategies

Rigid cost controls Rebooting the operations
• Fuel efficient fleet
• Addition of new flights and dynamic schedules
• Pre- exceptional employee cost savings
• New routes and larger aircrafts
Liquidity infusions
• Increase in air cargo services
New debts from IAG and Bank of England
• Robust financial controls to preserve the cash Vital health and safety controls to assure customers
position
• New Covid – 19 safety measures
• Asset financing structure
• Equipment's to reduce mobility and crew –
Business restructure and redundancy programs
• Assistance from the Covid-19 job retention customer interactions
scheme
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Analysis of the Impact of
Strategic Financial Decision

Dividend Decision
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02 Financial Decision

Investment Decision 01
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Post Covid – 19 Market Challenges
and Strategies to overcome them

Restoring traveler confidence in air travel

Accelerating the creation of a seamless passenger journey

The challenge of higher debt levels and lower cash reserves

To find the ideal working place for the future

Cost increment related issues

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Alternative Investment
Options of British Airways to
manage Cash Flows
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Investment in Investment in new Sustainable fleet

Cargo Services technologies
• Developed Sustainable
• Introduce carbon Aviation Fuels (SAF)
• Cargo revenue
offset and removal • Partnered with various
increased by projects companies to implement to
25.2% explore the future of
sustainable fleet
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Recommendation
01 Obtaining financing from other aids to solve the
company’s liquidity and debt problems

02 Resumptions of overseas travel to increase the

company’s demand and revenue

03 Ensuring that the company’s employees make use of

the resources available to them
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Conclusion
• Company overview

• Challenges faced by British Airways

• The impact of company’s strategic financial decision making

• Impact of cash flow management

• Current and future challenges in helping to restructure the business

process to maximize returns through alternative investment

• Recommendations and suggestions for overcoming all these

challenges
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THANK YOU