British Airways expects increased sales in the next financial year despite an economic slowdown.
The airline forecast that revenue will rise by as much as 4.5% to more than £9.1 billion in 2008-09.
But fuel costs are expected to be up by some £450 million to £2.5 billion, an increase of 20%.
Non-fuel costs are expected to rise by 3–3.5%. Total costs, excluding fuel, are forecast to be up £200 million.
As a result the carrier is forecasting an operating margin of about seven per cent for 2008/9.
Chief financial officer Keith Williams said as the airline held its annual investor day: “The outlook for next year is consistent with economic slowdown, the impact of increased fuel costs and one-off Terminal 5 transition costs, all of which analysts have already factored in to their expectations.â€
by Phil Davies
