British Airways report healthy profits

In spite of the consumer slowdown and increasing fuel costs, British Airways has announced strong results for the last nine months of 2007.

Pre-tax profits were £788 million, an increase of 34.9% compared with the same period of 2006.

Fuel costs in the first 6 months of the period fell by £36 million but rose £72 million the last 3 months.

Pre-tax profits for the final quarter of 2007 were £195 million which is 72.6% up from £113 million in the same period of 2006.

Chief executive Willie Walsh said this is another strong set of results despite rocketing fuel costs and challenges in the market.

However, shares in the airline fell 4.2% as analysts feared that an economic slowdown in the US and UK might affect sales of longhaul, premium class tickets.

In a statement, the company said that long-haul premium traffic was still strong but that on short-haul flights it had weakened. The group added that non-premium traffic on North Atlantic routes remains soft. The weakening US dollar had contributed to a £101 million decline in its costs over the 9 months.

Mr Walsh added the opening of Terminal 5 at Heathrow Airport is now less than 2 months away and the public trials and previews for our Executive Club members have been very successful.

It is anticipated that the new terminal will improve punctuality and baggage performance.

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