August security scare costs BA £100m

British Airways (BA) posted a fall in second-quarter profits as expected this morning.

British Airways (BA) posted a fall in second-quarter profits as expected this morning.

Europe's third-largest airline also trimmed its full-year revenue growth forecast after restrictions on hand luggage hit passenger traffic, but it said its fuel bill would be lower than expected after oil prices fell.

BA said its operating profit for the three months to end-September fell 8 per cent to £240 million sterling ($458.2 million), down from £261 million a year ago.

The result excluded a write-down of £106 million on its investment in regional subsidiary BA Connect, which it has sold to UK airline Flybe.

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The airline had been expected to post a profit of £235 million, according to the average of analysts' forecasts provided by the company.

BA said a security scare in August, which forced it to cancel hundreds of flights, had cost it £100 million in the quarter, in line with analysts' expectations. The airline said in September the security alert had cost it £40 million.

The airline said it expected its fuel bill to be £400 million higher this year, an improvement from a £450 million rise forecast previously.

PA