British Airways Reveals Profits Boost

British Airways has presented its interim management report for the first six months of the year with an operating profit of £556 million, compared to £442 million in 2006.

Other highlights include operating margin up 12.5 percent, profit before tax of £593 million, long-haul fleet order announced, full year fuel costs expected to top £2 billion, and 10 percent operating margin on track.

“These are record results which are driven by all the hard work our people put in last year to tackle the cost base of our business. Profits are up some 26 percent and costs are down nearly 4 percent. Fuel costs remain a major challenge and our fuel bill for the year is expected to top £2 billion for the first time. We see every possibility of achieving our 10 percent operating margin by March 2008,” said British Airways’ chief executive Willie Walsh.

“Further good news was our welcome return to investment grade which helped us negotiate the finance for aircraft deliveries until 2011, despite the current difficulties in the markets,” he added.