British Airways Plc posted a first profit in two years as surging sales of business tickets allowed it to ramp up fares. Europe’s third-largest carrier said its outlook depends on an economic environment that remains unclear.
Net income in the second quarter ended September 30 was £229 million ($365 million), compared with a £111- million year-earlier loss. Sales rose 18 per cent to £2.51 billion.
British Airways, which last posted a profit for the quarter ended June 2008, shortly before the collapse of Lehman Brothers Holdings Inc, slashed capacity as the recession hurt bookings. That’s given it control over pricing as traffic returns, and yields — a measure of fares — jumped 20 per cent in the three months, Chief Executive Officer Willie Walsh said today.
