BA Announce Soaring Profits

British Airways has announced a significant rise in profits despite the botched opening of Terminal 5.

BA has reported that revenue is up 3.1% to £8,753 and two million passengers have passed through T5 since it's opening. Staff are also set to share a £35 million bonus.

BA say that they expect revenue for the full year to be up by around 4%.

Shareholders will also benefit as BA says that it will pay an annual dividend of five pence a share for the year ended 31 March.

However, in a surprise move, the BA boss announced he will surrender his own bonus in light of the troubled opening of T5 - such was the controversy surrounding the chaotic opening week for the facility.

However, the good news came with a warning as soaring oil prices and costs could make the first quarter of the year difficult.

BA, Europe's third-largest flag carrier uses approximately six million tonnes of jet fuel a year - full year fuel costs topped £2 billion.

BA Chief Executive Willie Walsh said: "This is an outstanding financial result for the company despite rising fuel prices and significant economic slowdown in the last six months. We have achieved our goal of a 10% operating margin which I am delighted has triggered the reward scheme for our staff. For our shareholders too, it signals the welcome return of a dividend - the first since 2001.

"Despite the difficulties of the opening of Terminal 5 in the first few days, it is now working well and some two million passengers have gone through it and many have enjoyed the experience.

"Phase 2 of the move of our long haul services into the terminal begins on June 5 and will include our premier New York services and flights to seven other destinations."

Mr Walsh added that as Heathrow has no spare runway capacity - operating on the same two runways it had when it opened 60 years ago - BA is "vulnerable to short-term disruption".

"The full year will also be challenging, against an uncertain economic outlook. As a result, we have reduced capital expenditure and are reviewing our capacity, costs and network in the context of the economic pressures and high fuel prices," Mr Walsh said.

He also said that he expected long-haul premium traffic to remain strong although long haul economy has been weak since August.

In other news, it has been reported that one of a gang that once hijacked a plane at Stanstead Airport now works at a BA office building near Heathrow.

Nazamuddin Mohammidy, 34, an Afghan national who lives in Middlesex works for a cleaning contractor just a mile from the airport.

Mohammidy along with nine others seized an Airana plane in February 2000 on an internal flight in Afghanistan and ordered the plane to Stanstead.

He was jailed for 30 months for his involvement but all the other members of the gang had their convictions quashed by the Court of Appeal as it was decided that the gang had been working "under duress" as they fled the Taliban.

(DS)