BA flies into the red - What is the truth behind the headlines?

'There are lies, damn lies - and statistics'

A bit of an exaggeration perhaps but the reporting of financial figures is more about the headline result of a report than anything else. The result comes first and the explanation a very distant second in many cases - particularly from a British perspective. The following headline from last week is surely meant to shock and scream out from the pages, 'Hell! BA are going bust!!'

"BA suffers first quarter loss of £164 Million"

The glory headline is the result the reporter wants to tell, not the story behind it. Whilst the losses are severe and damaging, the result did include a number of "one offs", most notably the losses incurred when the airline along with many others was grounded for a significant period due to the volcanic ash cloud which could not be accounted for, but more significantly the ongoing industrial dispute with cabin staff over the attempt by British Airways PLC - 01777777 to bring them into line with other major airlines over working practices. Had it not been for these two items alone, B A would have made a profit, as this accounted for £250 million.

The full picture paints a different story in many, many cases but has less impact.... initially.

The moral of the story: assessing any business involves many factors and financial statistics and headlines should be used only in part to gain an overall assessment. It shouldn't be the defining factor.