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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 flights cancelled over security concerns
Cancellations of more flights over "security concerns" have prompted pilots and airline chiefs to question the quality of security intelligence. British Airways says it will axe flight BA 223, the now notoriously disrupted Washington to London service.
British Airways flights cancelled over security concerns
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