IAG, the parent company of British Airways, published its 2017 results on Friday.
The share price fell sharply (5.7%) after the numbers were released.
The most astonishing number is on page 14 – CASK exc fuel for BA. CASK is ‘costs per available seat kilometre’.
As we know from various BA management pronouncements over the last 18 months, the airline is now 100% focused on cost reduction. Every British Airways employee, every day, is permanently focused on cutting expenditure.
Vueling cut its CASK by 0.9%. Aer Lingus cut CASK by an impressive 6.4%. Iberia couldn’t control costs so well and its CASK went up by 4.8%.
And British Airways? CASK rose by a whopping 5.4%. Remember that this excludes fuel, which the airline cannot control. Heaven knows what would have happened if all BA employees were not 100% focused on cost cutting …..
It is also worth pointing out something interesting on Slide 27. BA’s ‘Plan4’, which is the catch-all phrase for the various customer-facing changes being made, is listed as a key cost reduction activity. Not, note, as an ‘investment’. Whilst the company may be claiming that it is ‘investing’ £400m / £600m or whatever the number is this week in Club World, it is telling the City that this is actually a cost-cutting programme.
How to earn Avios from UK credit cards (January 2023)
As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:
There are two official British Airways American Express cards with attractive sign-up bonuses:
SPECIAL OFFER: Until 21st February 2023, the sign-up bonus on the British Airways Premium Plus American Express card is increased to 35,000 Avios from 25,000 Avios. You can apply here.
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points.
Run your own business?
We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios.
SPECIAL OFFER: Capital On Tap has increased its sign-up bonus to points worth 30,000 Avios if you apply by 4th February. This is exclusive to Head for Points readers. Click here to apply.
You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus.
There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.
Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.