British Airways said today it would make a small profit in the current financial year, as first-half to the end of September profits plunged to £52 million from £616 million last year.
The company, which also reported a further fall in passenger numbers for October, also said revenue for the year would grow by at least 4 per cent after a slight increase for the half year to £4.75 billion.
"This is a good performance given the incredibly difficult trading conditions. The six month period will be remembered as the bleakest on record," chief executive Willie Walsh said in a statement, citing high fuel costs and the banking crisis.
He said the fuel bill for the year would still be the previously stated 3 billion pounds despite lower oil prices, and that its hedging strategy remained broadly in place.
October passenger numbers fell 4.4 per cent compared to the same month last year, but this included a 9 per cent fall in business travel - the main source for BA profits.
Shares in the airline closed yesterday at 130.5 pence, less than half the level at the start of the year, valuing the business at £1.5 billion.
Reuters