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07/11/2008
BA Announces Profits Slump During 'Bleakest' Six Months
British Airways have announced a 91.6% drop in its half year profits in a period which has been described as "one of the bleakest on record".
Pre-tax profits of £52 million plummeted from £616 million last year in the six months to September 30.
The Heathrow-based airline carrier revealed the massive drops were a result of the surge in oil prices.
BA's Chief Executive Willie Walsh today said: "The six-month period will be remembered as one of the bleakest on record. The period was hit by a crisis in the banking sector, record fuel prices and several airlines going out of business."
However, he added the airline had done well, considering the circumstances - with fuel costs increasing by £511 million to £1.49 billion. Mr Walsh said: "This is a good performance given the incredibly difficult trading conditions."
The economic downturn has also been blamed as one of the major factors affecting passenger numbers. Though, BA's CEO said he was confident the airline would be able to make a "small profit" for the financial year.
Investors have been encouraged by the optimistic projection, with BA share prices up 15.6%, or 20.30p, at 150.8p in morning trade.
Mr Walsh announced BA - which has already reduced the number of flights it will make this winter - was planning to drop capacity by around one per cent for the summer 2009 schedule, in anticipation of the economic downturn.
BA has already suspended four summer 2009 schedule services - Heathrow flights to Dhaka in Bangladesh and Calcutta, as well as Gatwick flights to Dublin and Zurich.
Meanwhile, Mr Walsh also said a third runway for Heathrow was "critical" for the UK economy, adding that during the tough economic times "an efficient international hub airport gateway is now more important than it has ever been".
It has also just been revealed that while passenger numbers are up at the Irish flag-carrier, Aer Lingus, with the airline reporting a 3.8% increase in October compared to the same month last year - representing a 6.3% increase in passengers on short haul flights - there has been an 11.4% fall in passengers on long haul.
The load factor on both short haul and long haul flights was down with capacity increased.
See: SIPTU Result On Aer Lingus Strike Ballot Due
(JM)
Pre-tax profits of £52 million plummeted from £616 million last year in the six months to September 30.
The Heathrow-based airline carrier revealed the massive drops were a result of the surge in oil prices.
BA's Chief Executive Willie Walsh today said: "The six-month period will be remembered as one of the bleakest on record. The period was hit by a crisis in the banking sector, record fuel prices and several airlines going out of business."
However, he added the airline had done well, considering the circumstances - with fuel costs increasing by £511 million to £1.49 billion. Mr Walsh said: "This is a good performance given the incredibly difficult trading conditions."
The economic downturn has also been blamed as one of the major factors affecting passenger numbers. Though, BA's CEO said he was confident the airline would be able to make a "small profit" for the financial year.
Investors have been encouraged by the optimistic projection, with BA share prices up 15.6%, or 20.30p, at 150.8p in morning trade.
Mr Walsh announced BA - which has already reduced the number of flights it will make this winter - was planning to drop capacity by around one per cent for the summer 2009 schedule, in anticipation of the economic downturn.
BA has already suspended four summer 2009 schedule services - Heathrow flights to Dhaka in Bangladesh and Calcutta, as well as Gatwick flights to Dublin and Zurich.
Meanwhile, Mr Walsh also said a third runway for Heathrow was "critical" for the UK economy, adding that during the tough economic times "an efficient international hub airport gateway is now more important than it has ever been".
It has also just been revealed that while passenger numbers are up at the Irish flag-carrier, Aer Lingus, with the airline reporting a 3.8% increase in October compared to the same month last year - representing a 6.3% increase in passengers on short haul flights - there has been an 11.4% fall in passengers on long haul.
The load factor on both short haul and long haul flights was down with capacity increased.
See: SIPTU Result On Aer Lingus Strike Ballot Due
(JM)
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British Airways is being investigated over allegations of price fixing over fuel surcharges on long-haul flights to and from the UK, it has been revealed. BA announced that that a joint investigation between the Office of Fair Trading in the UK and the US Department of Justice was taking place and said that it was co-operating with the inquiry.
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BA increases fuel surcharges
British Airways has announced that it is to increase its fuel surcharges on longhaul flights. The rise – the fifth since May 2004 – will increase the cost of the fuel charge on a longhaul one-way flight to £30 and £60 for a return trip, from September 12. The additional charges do not apply to tickets already paid for and issued.
BA increases fuel surcharges
British Airways has announced that it is to increase its fuel surcharges on longhaul flights. The rise – the fifth since May 2004 – will increase the cost of the fuel charge on a longhaul one-way flight to £30 and £60 for a return trip, from September 12. The additional charges do not apply to tickets already paid for and issued.
13 February 2004
British Airways flights cancelled over security concerns
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British Airways flights cancelled over security concerns
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01 April 2008
Baggage Blues For BA Passengers
The beleaguered airline, BA has issued a fresh apology to thousands of travellers who are without their luggage. Chaos ensued after the opening of Terminal 5, with problems ranging from staff parking to computer hitches.
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29 July 2008
BA And Iberia In Merger Talks
The UK's 'flag-carrier' British Airways and Spanish airline, Iberia are holding talks with a view to an "all-share" merger. The deal would allow the companies to combine nearly all aspects of their operations including sales, purchases and marketing.
BA And Iberia In Merger Talks
The UK's 'flag-carrier' British Airways and Spanish airline, Iberia are holding talks with a view to an "all-share" merger. The deal would allow the companies to combine nearly all aspects of their operations including sales, purchases and marketing.
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