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BA net profits up by 25 percent
But airline's CEO Eddington cautious on outlook
Monday, November 8, 2004 Posted: 1115 GMT (1915 HKT)
Fuel costs remain a problem, says BA's Eddington.
LONDON, England (AP) -- British Airways said Monday that net profit rose by 25.5 percent over the latest quarter and that passenger numbers also rose.
Chief Executive Rod Eddington said the good figures compared with a weak second quarter last year, when performance was affected by the SARS virus and the Iraq war.
"We are making steady progress in building a more robust airline," Eddington said. "Rising fuel costs, however, are expected to continue and remain a challenge along with employee costs."
In October, the carrier hiked fuel surcharges to £10 ($18.60) per long haul flight, or £4 ($7.40) per short haul flight, in response to rising oil prices. .
The airline said net profit for the three months to September 30 was £123 million ($228m) up from £98m a year ago. Earnings per share were 11.2 pence (20.8 U.S. cents), up 25.8 percent from 8.9 pence a year ago.
Sales were £2.03 billion ($3.77bn) up 2.2 percent from £1.98bn. The carrier said the increase was largely due to the impact of fuel surcharges and an increase in cargo revenue of 6.3 percent, with passenger revenue declining by 0.9 percent.
However, passenger numbers were up 0.9 percent to 9.8 million over the quarter.
The airline said it expected sales to improve 2-3 percent over the financial year to March 2005 with fuel costs net of hedging up £245 million ($454.5m) compared with last year. That was £20 million ($37m) up from British Airways' last estimate.
But the airline said passenger and cargo fuel surcharges forecast at £160 million ($296.8m) for this year would partially offset the increase.
http://edition.cnn.com/2004/BUSINESS/11/08/british.airways.ap/index.html
But airline's CEO Eddington cautious on outlook
Monday, November 8, 2004 Posted: 1115 GMT (1915 HKT)
Fuel costs remain a problem, says BA's Eddington.
LONDON, England (AP) -- British Airways said Monday that net profit rose by 25.5 percent over the latest quarter and that passenger numbers also rose.
Chief Executive Rod Eddington said the good figures compared with a weak second quarter last year, when performance was affected by the SARS virus and the Iraq war.
"We are making steady progress in building a more robust airline," Eddington said. "Rising fuel costs, however, are expected to continue and remain a challenge along with employee costs."
In October, the carrier hiked fuel surcharges to £10 ($18.60) per long haul flight, or £4 ($7.40) per short haul flight, in response to rising oil prices. .
The airline said net profit for the three months to September 30 was £123 million ($228m) up from £98m a year ago. Earnings per share were 11.2 pence (20.8 U.S. cents), up 25.8 percent from 8.9 pence a year ago.
Sales were £2.03 billion ($3.77bn) up 2.2 percent from £1.98bn. The carrier said the increase was largely due to the impact of fuel surcharges and an increase in cargo revenue of 6.3 percent, with passenger revenue declining by 0.9 percent.
However, passenger numbers were up 0.9 percent to 9.8 million over the quarter.
The airline said it expected sales to improve 2-3 percent over the financial year to March 2005 with fuel costs net of hedging up £245 million ($454.5m) compared with last year. That was £20 million ($37m) up from British Airways' last estimate.
But the airline said passenger and cargo fuel surcharges forecast at £160 million ($296.8m) for this year would partially offset the increase.
http://edition.cnn.com/2004/BUSINESS/11/08/british.airways.ap/index.html
