BA profits boosted by cuts in IT spend

A company-wide cost-cutting programme has helped British Airways boost its end-of-year profits by a third, with cuts in IT spend playing a key part.

The airline announced operating profits of £540m for the year ended 31 March 2005, compared to £405m the year before.

The profits boost came despite the highly publicised increase in fuel costs, with the group's preliminary results statement crediting various cost savings, including "reduced IT spend".

A technology streamlining and simplification programme led by BA CIO Paul Coby has also played a key part in the airline beating its target of achieving £450m of company-wide savings by £7m.

BA's outgoing CEO, Rod Eddington, said the airline's focus is now on preparing for the move to Heathrow Terminal Five in 2008 and a continuation of the drive for simplification and a competitive cost base.

"Our focus on cost remains key to long-term profitability," he said in a conference call.