Strong performance by British Airways

British Airways said today it made an operating profit of £734 million (2006: £571 million) in the nine months to December 31, up 28.5 per cent. Profit before tax reached £788 million (2006: £584 million) up 34.9 per cent. The results were achieved despite a rise in the fuel bill of £72 million in third quarter.

“This is another good set of results despite soaring fuel costs and difficulties in the market. Revenue up some one per cent and a strong cost performance has led to an operating profit up 28.5 per cent. While fuel costs in the first six months were down £36 million, they have soared £72 million in the third quarter” CEO Willie Walsh said.

“The opening of Terminal 5 is now less than two months away and the public trials and previews for our Executive Club members have been very successful. When it opens in March our passengers will be able to enjoy a calm and effortless experience. The suite of lounges will be the largest and most luxurious in the world and will allow our passengers to work or relax in comfort.

“We have also launched our new airline OpenSkies as a result of the new transatlantic air treaty. It will operate initially with one Boeing 757 non-stop between New York and Europe and offer business, premium economy and economy class. It will complement our business not compete with it.

“We will also launch a new all business class niche service in 2009, linking the two largest financial centres of the world with flights from London City to New York on Airbus A318 aircraft. We are confident it will be a success as London City airport is only a short distance from the heart of London’s financial district.”

British Airways pointed out that it had continued to win awards including the World’s Leading Airline at the World Traveller Awards, first prize for the new Club World seat at the International Design Awards in the US, Best Airline, Best Shorthaul, Best Economy Class and Best Frequent Flyer Programme at the Business Traveller Awards and Conde Naste Traveller magazine Best Leisure Shorthaul Airline.

Following the incident at Heathrow in January involving one of its Boeing 777s, the aircraft has been written off by underwriters and the insurance claim agreed in full. There will be no material effect in the results. The flight and cabin crew and all staff involved were praised for their outstanding performance in the incident.

BA recently signed contracts for 12 Airbus A380 aircraft and 24 Boeing 787 aircraft and options for a further seven A380s and 18 B787s. The order allows for replacement of older aircraft and sustainable, profitable growth.

It has also ordered two Airbus A318 aircraft to operate its planned business only services from London City airport to New York in 2009.