BA sees strong 26 percent rise

Source: Stock Market Digital

Date :02/11/2007 09:35:04

British Airways reported a 26 percent increase in first-half profit on Friday, helped by cost cutting, and said its business and first-class market remained strong.

Profit before tax was 593 million pounds ($1.23 billion) in the six months to September 30, compared to 471 million a year earlier.

Despite the increase, boss Willie Walsh said that fuel costs remain a major challenge for the airline, predicting the fuel bill for the year to top £2 billion for the first time, up by £100 million last year.

On-track

The weak dollar has also been a challenge for the group, with BA revising full year revenue growth down from four percent to about three to 3.5 percent.

However, the dollar's weakness has also helped trim costs, excluding fuel, by four percent in the six months to September 30, and BA hopes full-year costs will be £100 million less than last year.

The airline also said it was on track with its goal of keeping operating margins at ten percent or more, having hit 12.5 percent in the first half.

November 2 2007