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BA faces £100m extra fuel costs
British Airways faces an increased fuel bill of £400 million more than last year due to soaring oil prices.
The higher fuel costs are £100 million more than original estimates due to recent price rises, the airline said while revealing that pre-tax profits for the fourth quarter ending March 31 had dropped to £5 million from £45 million the same period a year earlier.
Cost cutting during the year helped BA achieve an 80% rise in annual pre-tax profits of £415 million against £230 million in the previous 12 months.
The airline revealed that it had achieved savings of £457 million against a target of £450 million in a 2003-05 business plan and a further £300 million will come from staff cuts by March 2007.
BA described market conditions as being “broadly unchanged” with total revenues expected to rise by 4-5% against 3-4% due to the imposition of latest fuel surcharges.
Capacity and carryings are forecast to rise by about 3% but total yield will remain flat.
Report by Phil Davies
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