Company Watch - British Airways.

For more company news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Aug 7, 2006

British Airways reported a 20% increase in its first-quarter profits to June but warned of a tougher second half and higher-than-expected staff costs. In spite of pronouncements by rivals (largely one Irish rival) that the airline would suffer industrial problems during August it looks like the airline will get a clear run for the major holiday period, although it could have put off a few customers. Fuel costs have risen dramatically partly offset by passenger fuel surcharges. The operating profit was [pounds sterling]211m (2005: [pounds sterling]176m profit) and cash flow [pounds sterling]475m, an increase of [pounds sterling]126m from last year. http://www.ba.com Aug 5, 2006

British Airways' operating profit for the three months to June 30 was GBP211 million (USD$402 million) compared to GBP176 million (USD$335.2 million) a year ago, and revenue jumped 12.5 percent. BA said its load factor in the first quarter was up 2.7 points to a record 78.3 percent. The airline said costs excluding fuel would be slightly higher due to the impact of pension contributions on its rising wages bill. BA has previously tipped flat costs for the year. Fuel costs would be GBP550 million - GBP600 million (USD$1.05 billion - USD$1.14 million) higher as expected. British Airways and other airlines have partly offset record oil prices with passenger fuel surcharges. Walsh said the airline had no immediate plans to raise fuel surcharges despite rising oil prices. The airline has 65 percent of its fuel needs for the year hedged at USD$62. Aug 4, 2006

British Airways Profits Up On Fuller Planes. British Airways reported a 20 percent rise in first-quarter profit on Friday helped by fuller planes, but it warned of a tougher second half and higher-than-expected staff costs. BA, Europe's third-largest airline, raised its guidance for sales this year after filling more first-and-business-class seats but said the second-half would be tough as airlines discount tickets amid stiff competition. "It is going to be a year of two halves. We don't expect to see the strong revenue performance we saw in the first quarter to continue through the year," Chief Executive Willie Walsh said, echoing comments made by rival Ryanair this week. Aug 4, 2006

British Airways tipped full-year revenues to rise 6 to 7 percent, up from its previous guidance of 5 to 6 percent. A recovery in first and business class traffic, new routes to India and China and demand for trans-Atlantic flights have buoyed sales. BA plans to introduce a new business-class seat by the end of the year. The airline's passenger traffic rose 4.4 percent in July and its load factor was 82.3 percent in the month, up slightly from July last year. Aug 4, 2006

British Airways's Walsh declined to comment on a joint US-UK investigation into alleged cartel activity over airfares and fuel charges. BA put two senior executives on leave as a result of the inquiry. Aug 4, 2006