950807

BA's pre-tax

profit soars

LONDON: British Airways Plc said on Monday its first-quarter profits soared by 57 percent to a record 135 million pounds ($216.4 million) pre-tax.

The figure for the three months ended June 30 compares with a restated 86 million pounds ($137.9 million) for the same period a year ago, and comfortably beat analysts' forecasts which ranged from 110 million pounds ($176.3 million) to 121 million pounds ($194 million).

Chairman Sir Colin Marshall said the airline's result reflected good demand particularly on longhaul routes, as well as continued strength in premium passenger traffic.

Marshall said demand for passenger and cargo services remained strong in the current quarter, but fierce competition in the sector meant that average fare levels, or yields, were expected to stay under pressure in real terms.

"We certainly see strong forward bookings at this time and we continue to see the competitive situation remaining as very intense as well, but that is a condition that we have become accustomed to living with," he told Reuters in a post-results interview.

"So we are certainly positive in terms of the outlook for the second quarter of the year and therefore for the year as a whole."

He also said he expected further growth as a result of BA's worldwide alliances during the rest of the financial year.-Reuter