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 2022)
As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!
There are two official British Airways American Express cards with attractive sign-up bonuses.
There are special sign-up bonuses on both of the BA American Express cards until 28th February 2022. The bonus on the free card is doubled to 10,000 Avios and the bonus on the Premium Plus card is increased from 25,000 Avios to a huge 40,000 Avios.
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points, such as:
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 30,000 Avios.
30,000 Avios is a special offer which runs to 4th February 2022.
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 45,000 Avios sign-up bonus.
45,000 Avios is a special offer which runs to 28th February 2022.
Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.
(Want to earn more Avios? Click here to visit our home page for our latest articles on earning and spending your Avios points and click here to see how to earn more Avios this month from offers and promotions.)