Annual Financial Report Analysis for British Airways PLC Essay

Annual Financial Report Analysis for British Airways PLC - Essay Example e years und the light of the important sections in the company’s annual report i.e., notes to the accounts, statement of accounting policies, directors’ report, operating and financial review statement, chief executive’s statement, chairman’s statement and the press releases of the company in order to illustrate the impact of any of the company policy, market and environment on the company’s financial performance during the year. At the end of the report, important factors critical to the company’s future growth and financial performance have been presented based on the analysis. British Airways is the worlds second largest international airline, carrying more than 27 million passengers, and one of the worlds longest established passenger brands. In the financial year to 31 March 2004, more than 36 million people chose to fly on flights operated by BA. An average of 51,939 staff were employed by the group worldwide in 2003-2004, 85.0 per cent of them based in the UK. Unlike some of the worlds other airlines, BA is owned entirely by private investors - with around 260,000 shareholders, including some 49 per cent of the companys own employees (British Airways Plc, accessed 6.12.2005) The main activities of British Airways Plc and its subsidiary undertakings are the operation of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail and the provision of ancillary services (1) BAs main business is the provision of scheduled passenger services, which accounted for approximately 83% of the Companys turnover during the fiscal year ended March 31, 2005 (fiscal 2005). The Company also provides other services to outside parties, such as aircraft maintenance. The Companys operations also include certain ancillary airline activities, including air cargo (British Airways, accessed 5.12.2005) British Airways Group fleet as at 31 December 2004 comprised 293 aircraft - one of the largest fleets in Europe. The