BA profits soar to £289m

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The beleaguered airline made a pre-tax profit of £289 million in April-June 2007 compared with a pre-tax profit of £191 million in April-June last year.

"These are very good results despite operational difficulties at Heathrow," said BA chief executive Willie Walsh.

Operating profit for spring 2007 was £263 million compared with £206 million in spring last year, but revenue was flat. Passenger revenue fell 1.9% to £1.89 billion, but the overall pre-tax profit of £289 million was well above the figure predicted by analysts.

Mr Walsh said: "Profits are up as a result of the steps we took last year to control costs and strengthen our business. Revenue is flat before exchange and reflects the continued impact of security and baggage restrictions on short-haul and premium (first class and business class) transfer traffic, which Heathrow has been struggling to cope with."

He went on: "We appreciate how frustrating this has been for our customers and I am pleased the Government has also recognised this and set up a working group to see how quickly the restrictions on hand baggage can be eased. In order for the Government to remove the restrictions, (airport operator) BAA must recruit additional personnel and invest in the right equipment so we can get back to offering good customer service.

"The opening of (Heathrow's) Terminal 5 is now just 236 days away and on September 17 BAA hands over the terminal to us. Trials with staff and 2,000 members of the public on all aspects of the new facility start in November.

"I am delighted that, ahead of our move, we have agreed working practice changes with all our Heathrow customer service and operational staff and a two-year pay deal with all our trade union groups which takes us through to 2009. Our operating margin for the quarter is 12% and our target of a 10% operating margin for the year remains."

Meanwhile, budget airline Ryanair announced that it had carried 4.76 million passengers in July 2007 - a 21% increase on the July 2006 total.

The Irish low-fare carrier also said it was offering 2.7 million seats for travel through September, October and November this year at a £10 one-way price, including all taxes and charges.