Company Watch - British Airways.

For more company news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Aug 14, 2006

British Airways canceled 30 percent of its flights from London's Heathrow Airport on Sunday in a growing row with airport authorities over how to handle tougher security. Four days after police said they had thwarted the alleged plot, airlines warned that cancellations and disruptions showed no sign of easing. In the blame game that erupted, British Airways called on airport owners BAA to increase resources with chief executive Willie Walsh complaining: "BAA is unable to provide a robust security search process and baggage operation." Aug 13, 2006

British Airways has gone one step further than the vast majority of airlines with a facility to actually get refunds for cancelled flights online. Customers are told of flight problems using a "disruption notification tool", which sends emails and text messages on cancelled services and it includes their BA booking reference and requests that they go online or contact the airline or travel agent. It comes at a particularly good time with the Heathrow disruptions as some passengers on flights cancelled more than 48 hours before departure are automatically booked on to the nearest available service. Unlike some similar offerings from competitors, with the BA scheme you can actually get your money back! http://www.ba.com Aug 12, 2006

British Airways says it has complied with a BAA directive to cancel 20% of its flights today (Monday August 14) at Heathrow. The instruction, which applies to all airlines operating at the airport, is a result of continuing congestion following last week's security problems. BA anticipates that it will operate a full European and long haul schedule from Gatwick. However all 26 domestic flights departing today, excluding those to Jersey, are cancelled. On Sunday CEO Willie Walsh issued a statement in which he strongly criticised the BAA Heathrow performance. Ryanair was also in the blaming mood the Irish airline complaining that the UK government has been heavy handed. easyJet (on Sunday evening) said that they planned to operate a full schedule today. British Airways web site states the flight situation but the two budget carriers seem to be less forthcoming with news. The BAA site sets out very clearly the restrictions regarding what you can or cannot carry on board. http://www.baa.com Aug 12, 2006

BA Expects Most Short-Haul Flights To Operate. British Airways said on Friday most of its short-haul services to and from Heathrow Airport were expected to operate, a day after it canceled all short-haul flights to and from the airport due to heightened security after a bomb threat. Aug 11, 2006

British Airways cancelled approximately 400 mainline services, about half of its normal flying program, predominately domestic and short-haul services to and from Heathrow and London Gatwick on Thursday. It said it anticipated operating around 60% of its scheduled 400 short-haul and domestic services and around 75% of its scheduled 150 long-haul services to and from LHR on Friday, including all long-haul services to and from every country with the exception of the US. Flights to and from the US are likely to continue to suffer knock-on delays as a result of enhanced security measures and may be subject to possible cancellations. Aug 11, 2006

US Dept. of Transportation reached a $50,000 settlement with British Airways, which denied boarding to four mobility-impaired passengers on flights leaving the US. BA was sanctioned for not attempting to determine if the passengers were able to assist in their own evacuation if necessary and will be allowed to credit $45,000 of the penalty toward new training programs for US-based employees. Aug 9, 2006

British Airways announced it will boost its London Heathrow-Sao Paulo Guarulhos service to 10-times-weekly from seven beginning Dec. 3 and said it flew 10.82 billion RPKs in July, a 4.4% rise over the year-ago month. Capacity grew 2.8% to 13.14 billion ASKs, raising load factor 1.2 points to 82.3%. Aug 7, 2006

British Airways CEO Willie Walsh said "Our customers continue to see the benefit of investments in products and services," adding, "On short-haul our new low fares have been a big success. While competition in this market is brutal, I am delighted to see we are winning customers with record seat factors. We're now even more competitive on price whilst keeping ahead of the game by offering full-service flights more frequently to more convenient airports." Total cost per ATK was up 7.9% to 35.5 pence. Aug 7, 2006

British Airways enjoys another strong quarter as profits jump 71%. British Airways continued its resurgence through the first quarter of its fiscal year as record load factors and a "better cabin mix" helped boost its profit for the three months ended June 30 to [pounds sterling]154 million ($289.5 million), a 71.1% increase over net earnings of [pounds sterling]90 million in the year-ago quarter.Turnover rose 12.5% to [pounds sterling]2.32 billion and operating expenses climbed 11.8% to [pounds sterling]2.11 billion, lifting operating profit 19.9% to [pounds sterling]211 million from [pounds sterling]176 million in the June 2005 quarter. Fuel costs surged 44.2% to [pounds sterling]512 million. Aug 7, 2006

British Airways flew 29.91 billion RPKs, up 7.7% year-over-year, against a capacity increase of 4.1% to 38.22 billion ASKs. Load factor gained 2.7 points to 78.3%. Yield climbed 6% to 6.71 pence and passenger unit revenue improved 9.6% to 5.25 pence. Aug 7, 2006

British Airways looking ahead, "Strong revenue is expected to continue, supported by significant promotional activity driving seat factors in all cabins," according to Chairman Martin Broughton. Full-year revenue now is expected to improve 6%-7% from the [pounds sterling]8.52 billion earned in the 2005-06 fiscal year, up from BA's original forecast of 5%-6%. Through the quarter ending Sept. 30, capacity will rise approximately 4%, slowing to a 2.5%-3% increase by fiscal year end as unit costs excluding fuel, expected to remain stable, "are now expected to be slightly higher this year as pension costs are driving employee costs up." Aug 7, 2006