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2007/08 Annual Report and Accounts
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Notes to the accounts continued
3 Segment information

a Business segments

For the year ended March 31, 2008

  Continuing operations    
£ million Airline business Non-airline business Unallocated Total Discontinued operations* Total
Revenue            
Sales to external customers ** 8,561 192   8,753   8,753
Inter-segment sales 31     31   31
Segment revenue 8,592 192   8,784   8,784
Segment result 850 25   875 (2) 873
Other non-operating income 9     9   9
Profit/(loss) before tax and finance costs 859 25   884 (2) 882
Net finance costs     (41) (41)   (41)
Profit/(loss) on sale of assets 16 (2)   14   14
Share of associates’ profit 26     26   26
Income tax expense     (187) (187)   (187)
Profit/(loss) after tax 901 23 (228) 696 (2) 694
Assets and liabilities            
Segment assets 10,797 99   10,896   10,896
Investment in associates 227     227   227
Total assets 11,024 99   11,123   11,123
Segment liabilities 3,260 298   3,558   3,558
Unallocated liabilities ***     4,332 4,332   4,332
Total liabilities 3,260 298 4,332 7,890   7,890
Other segment information            
Property, plant and equipment – additions 636 1   637   637
Intangible assets – additions 40     40   40
Depreciation, amortisation and impairment 690 2   692   692
Exceptional items (note 4b) 1     1   1

* As disclosed in note 5, BA Connect, which previously comprised the majority of the ‘Regional airline business’ segment, was disposed of in March 2007. The results of operations for BA Connect are now presented as discontinued operations.
** Sales to external customers within the ‘Non-airline business’ segment include certain elements of other revenue related to the ‘Airline business’ segment.
*** Unallocated liabilities primarily include deferred taxes of £1,154 million (2006/07: £930 million) and borrowings of £3,174 million (2006/07: £3,346 million) which are managed on a Group basis.

For the year ended March 31, 2007

  Continuing operations    
£ million Airline business Non-airline business Unallocated Total Discontinued operations* Total
Revenue            
Sales to external customers** 8,294 198   8,492 233 8,725
Inter-segment sales 36 1   37 3 40
Segment revenue 8,330 199   8,529 236 8,765
Segment result 600 2   602 (122) 480
Other non-operating income/(expense) 2     2 (3) (1)
Profit/(loss) before tax and finance costs 602 2   604 (125) 479
Net finance costs     (45) (45) (5) (50)
(Loss)/profit on sale of assets (1) 48   47 (28) 19
Share of associates’ profit 5     5   5
Income tax (expense)/credit     (173) (173) 24 (149)
Profit/(loss) after tax 606 50 (218) 438 (134) 304
Assets and liabilities            
Segment assets 11,147 112   11,259   11,259
Investment in associates 125     125   125
Total assets 11,272 112   11,384   11,384
Segment liabilities 4,307 336   4,643   4,643
Unallocated liabilities***     4,330 4,330   4,330
Total liabilities 4,307 336 4,330 8,973   8,973
Other segment information            
Property, plant and equipment – additions 336 1   337 2 339
Intangible assets – additions 41     41   41
Depreciation, amortisation and impairment 712 2   714 120 834
Exceptional items (note 4b) 38     38   38

* As disclosed in note 5, BA Connect, which previously comprised the majority of the ‘Regional airline business’ segment, was disposed of in March 2007. The results of operations for BA Connect are now presented as discontinued operations.
** Sales to external customers within the ‘Non-airline business’ segment include certain elements of other revenue related to the ‘Airline business’ segment.
*** Unallocated liabilities primarily include deferred taxes of £1,154 million (2006/07: £930 million) and borrowings of £3,174 million (2006/07: £3,346 million) which are managed on a Group basis.

b Geographical segments – by area of original sale

  Continuing operations Discontinued operations Group
£ million 2008 2007   2008 2007   2008 2007
Europe: 5,576 5,316     224   5,576 5,540
United Kingdom 4,357 4,160     184   4,357 4,344
Continental Europe 1,219 1,156     40   1,219 1,196
The Americas 1,697 1,731     7   1,697 1,738
Africa, Middle East and Indian subcontinent 821 803     2   821 805
Far East and Australasia 659 642         659 642
Revenue 8,753 8,492     233   8,753 8,725

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