BWIA cuts half-year losses by 50 percent

BRITISH West Indies Airways Limited has cut its half-year losses by more than 50 percent when compared to last year’s performance. According to the airline’s interim financial statement the after tax losses to June 30 was (US)$6,481,000, while over the same period last year the company lost (US)$13,640,000. Commenting on the figures, Chief Executive Officer, Nelson Tom Yew said yesterday, “The Group is on the right track. It has reduced its losses and we are now looking forward to the future.”

The report, signed by Deputy Chairman Anthony Jacelon, states that “the financial results were substantially in accordance with the Business Plan, despite the significant and unprecedented increases in the price of fuel.” Referring to the unfinished Summer period, Tom Yew said, “ While no figures are yet available for July and August, the load factor has been consistent with projections and we estimate that we should achieve our revenue objectives.

“All these positives,” continued Tom Yew, “will be mitigated by the unprecedented increases in the price of fuel over the past several months and which seems set to continue into the future. This is something which the industry and others could not have forecasted. “As you are well aware, the price of crude oil has crossed the $50 a barrel barrier and industry pundits are now saying that it may well to the $60 mark. As it is now fuel is the company’s second biggest cost item,” added Tom Yew. The report pledged that in the remaining months of 2004, “the Group will continue its efforts to stabilise operations and to increase its overall competitiveness through a planned policy of commercialisation.” It continued that although there were challenges ahead, the management team and staff remained focused on achieving its objectives as laid out in the Business Plan.

Trade Minister Ken Valley, in whose portfolio BWIA resides, told Newsday, “I have been saying for some time now that the airline is heading in the right direction. This severe reduction in losses is only confirmation of that fact. “I believe that when the Summer figures are compiled, things might even be better,” added Valley.