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01/08/2008
BA Announce Profit Plummet
British Airways has announced a sharp decrease in first-quarter profits blaming the "worst trading environment" the industry has ever faced.
The pre-tax profit for the carrier was £37m for the quarter ending June 30, compared with £298m in 2007 - an 88% drop, partly because fuel costs soared by almost 49%.
As a result, BA has announced that it would cut 3% of flights this winter to reduce overheads.
However, and on a more positive note, the airline announced that more than six million passengers passed through the new Terminal 5 since its opening in March 27 and also that merger talks are in progress with Spanish carrier Iberia.
BA Chief Executive Willie Walsh, said: "We are in the worst trading environment the industry has ever faced. The combination of unprecedented oil prices, economic slowdown and weaker consumer confidence has led to substantially lower first quarter profits.
"Fuel prices have doubled in the past year. A successful hedging programme mitigated the impact but nevertheless fuel costs at £706 million were up £233 million in the quarter.
"We expect our fuel bill to top £3 billion this year - the equivalent of more than £8 million every day."
Mr Walsh added that the carrier has ordered six new Boeing 777-300ER aircraft for delivery beginning in 2010 which are 23% more fuel efficient that the Boeing 747-400 and give "additional flexibility in the longhaul fleet".
He also said he was "pleased" that talks with a merger with Iberia are underway which is "good news for both airlines, our shareholders and our customers".
Overall, passenger revenue was up 2.9% on capacity up 0.7% and BA's cash position at the end of the quarter under £2b, up £91m since March and net debt was £1.1b, £206m lower than at year end.
Mr Walsh concluded "despite the situation the industry is in, we remain absolutely focused on the interests of our customers".
See: BA And Iberia In Merger Talks
(DS)(BMcC)
The pre-tax profit for the carrier was £37m for the quarter ending June 30, compared with £298m in 2007 - an 88% drop, partly because fuel costs soared by almost 49%.
As a result, BA has announced that it would cut 3% of flights this winter to reduce overheads.
However, and on a more positive note, the airline announced that more than six million passengers passed through the new Terminal 5 since its opening in March 27 and also that merger talks are in progress with Spanish carrier Iberia.
BA Chief Executive Willie Walsh, said: "We are in the worst trading environment the industry has ever faced. The combination of unprecedented oil prices, economic slowdown and weaker consumer confidence has led to substantially lower first quarter profits.
"Fuel prices have doubled in the past year. A successful hedging programme mitigated the impact but nevertheless fuel costs at £706 million were up £233 million in the quarter.
"We expect our fuel bill to top £3 billion this year - the equivalent of more than £8 million every day."
Mr Walsh added that the carrier has ordered six new Boeing 777-300ER aircraft for delivery beginning in 2010 which are 23% more fuel efficient that the Boeing 747-400 and give "additional flexibility in the longhaul fleet".
He also said he was "pleased" that talks with a merger with Iberia are underway which is "good news for both airlines, our shareholders and our customers".
Overall, passenger revenue was up 2.9% on capacity up 0.7% and BA's cash position at the end of the quarter under £2b, up £91m since March and net debt was £1.1b, £206m lower than at year end.
Mr Walsh concluded "despite the situation the industry is in, we remain absolutely focused on the interests of our customers".
See: BA And Iberia In Merger Talks
(DS)(BMcC)
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12 November 2012
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MPs will vote on Monday evening on plans to increase fuel duty by 3 pence a litre in January. Labour have said "it would be wrong" to bring the new rise in s soon an want it delayed until at least April. Conservative MPs concerned about the cost of petrol said they believed Chancellor George Osborne was "in listening mode" over the issue.
MPs To Vote On Fuel Rise Delay
MPs will vote on Monday evening on plans to increase fuel duty by 3 pence a litre in January. Labour have said "it would be wrong" to bring the new rise in s soon an want it delayed until at least April. Conservative MPs concerned about the cost of petrol said they believed Chancellor George Osborne was "in listening mode" over the issue.
19 March 2008
Countdown For Fuel Payments For Pensioners
Over 60s who haven't yet claimed the Winter Fuel Payment have just days to get in touch with The Pension Service to receive help with energy costs. Pensions Minister Mike O'Brien urged older people to get their claim forms in the post before 28 March. The Winter Fuel Payment is £200 for the over 60s rising to £300 for the over 80s.
Countdown For Fuel Payments For Pensioners
Over 60s who haven't yet claimed the Winter Fuel Payment have just days to get in touch with The Pension Service to receive help with energy costs. Pensions Minister Mike O'Brien urged older people to get their claim forms in the post before 28 March. The Winter Fuel Payment is £200 for the over 60s rising to £300 for the over 80s.
07 September 2005
Fuel protests threatened
Protestors have threatened to begin blockading refineries next week, if the tax on fuel is not reduced. Andrew Spence, a spokesperson for the Fuel Lobby, warned that the blockades would begin at 6am on September 14, unless price cuts were made.
Fuel protests threatened
Protestors have threatened to begin blockading refineries next week, if the tax on fuel is not reduced. Andrew Spence, a spokesperson for the Fuel Lobby, warned that the blockades would begin at 6am on September 14, unless price cuts were made.
24 June 2005
British Airways announces ticket price rises
British Airways (BA) has announced an increase in fuel surcharge on ticket prices, due to increasing oil price rises. The longhaul fuel surcharge will increase to £48 per return trip, while the surcharge for shorthaul flights will rise to £16 for a return trip, for all tickets purchased from June 27.
British Airways announces ticket price rises
British Airways (BA) has announced an increase in fuel surcharge on ticket prices, due to increasing oil price rises. The longhaul fuel surcharge will increase to £48 per return trip, while the surcharge for shorthaul flights will rise to £16 for a return trip, for all tickets purchased from June 27.
16 May 2008
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%.
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%.
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Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
