British Airways doubles first quarter net profits

British Airways doubles first quarter net profits

   British Airways’ net profits doubled in its fiscal first quarter period ended June 30, to '90 million ($160 million), from '43 million in the same period last year.

   BA’s first quarter operating profit was up 36 percent to '176 million ($313 million) from '129 million in the first quarter of 2004. Revenues rose 8.3 percent to '2.05 billion ($3.66 billion). Cargo revenues during the first quarter were flat at '118 million ($210 million).

   BA’s fuel and oil costs soared 37.6 percent to '355 million ($632 million) from '258 million.

   The airline said it has improved its revenue outlook for the rest of the year thanks to the continuing strength of the U.S. dollar and increased surcharges. “We now expect total revenue for the year to March 2006 to grow by 5.5-6.5 percent. Capacity and volume are still expected to increase by about 3 percent with total yield flat,” said Martin Broughton, British Airways’ chairman.

   At the same time BA reported it carried 406 million cargo ton kilometers in July, a 3 percent drop from 419 million cargo ton kilometers in July 2004.