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Airport security disruption cost BA £100 million
The August terror alert cost British Airways £100 million, the airline confirmed today.
Releasing its three month results to September 30, BA said profits fell 27%, but over the six-month period profits rose 1.6% to £371m.
BA also announced plans to sell its loss-making regional airline BA Connect to low-cost rival Flybe (see separate story)
As a result of the heightened security, BA had to cancel 1,280 flights and suffered delays.
It has reduced its forecast for full-year sales growth by half a percentage point to 4.5%-5%.
Willie Walsh, chief executive, said: “Given the significant impact of the security disruptions these are good results. Despite the extremely difficult operational environment, we have delivered improved revenue.
“Our focus on costs is working and has helped offset the revenue impact of recent weeks. Fuel costs in the quarter increased by nearly a third. Underlying unit costs, excluding the BA Connect write-down and fuel, were down 1.1%. Costs will continue to be our focus as we work towards achieving a 10% operating margin.
He said BA would roll out its next generation Club World flat bed later this month.
“We are also enhancing ba.com to make it easier for our customers to book and get information about their travel plans,” he added.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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