BA reports profit up by 22 per cent

LONDON – British Airways PLC posted a 22 per cent rise in nine-month net profit on Friday as demand for long-haul business class tickets outweighed rising fuel costs and slowing demand for economy-class passage.

BA reported a profit of 623 million pounds for the nine months to December 31, up from 509 million pounds in the year-earlier period. Revenue rose 0,9 per cent to 6,6 billion pounds.The airline did not break out results for the third quarter.”Longhaul premium traffic continues to be strong,” the carrier said in a statement.”We have seen some fall in non-premium bookings in the January booking period compared to last year.”Premium traffic rose by between five and 10 per cent in each of the past three months, compared with a year earlier, the carrier said.Less lucrative economy-class traffic rose by 0,9 per cent.Analysts said the results were largely positive, but noted increased costs for baggage handling and engineering as well as fuel.Chief Executive Willie Walsh said that fuel costs soared 72 million pounds in the third quarter, after falling 36 million pounds in the first six months of the year.Chief Financial Officer Keith Williams warned that fuel and oil costs are expected to rise again in the airline’s new financial year, which begins April 1.”Clearly at these prices you’d expect fuel to be up next year,” Williams said, adding that the carrier has around 50 per cent of its fuel requirement hedged for the first half of the next fiscal year and about 35 per cent of the second half.The fuel outlook, and concerns over the launch of BA’s new airline, OpenSkies, helped push BA’s shared down 2,3 per cent to 324,5 pence on the London Stock Exchange.Nampa-APRevenue rose 0,9 per cent to 6,6 billion pounds.The airline did not break out results for the third quarter.”Longhaul premium traffic continues to be strong,” the carrier said in a statement.”We have seen some fall in non-premium bookings in the January booking period compared to last year.”Premium traffic rose by between five and 10 per cent in each of the past three months, compared with a year earlier, the carrier said.Less lucrative economy-class traffic rose by 0,9 per cent.Analysts said the results were largely positive, but noted increased costs for baggage handling and engineering as well as fuel.Chief Executive Willie Walsh said that fuel costs soared 72 million pounds in the third quarter, after falling 36 million pounds in the first six months of the year.Chief Financial Officer Keith Williams warned that fuel and oil costs are expected to rise again in the airline’s new financial year, which begins April 1.”Clearly at these prices you’d expect fuel to be up next year,” Williams said, adding that the carrier has around 50 per cent of its fuel requirement hedged for the first half of the next fiscal year and about 35 per cent of the second half.The fuel outlook, and concerns over the launch of BA’s new airline, OpenSkies, helped push BA’s shared down 2,3 per cent to 324,5 pence on the London Stock Exchange.Nampa-AP