British Airways profits plunge after 'bleakest' period

British Airways announced a 91.6% plunge in half-year profits today amid "incredibly difficult trading conditions" and high fuel prices.        

Pre-tax profits dived to 52 mn pounds ($82 mn) from 616 mn pounds during the same six-month period a year earlier.        

Despite the profits fall, BA shares surged 15.3 % to 150.5 pence in early London trading because the results had been better than analysts' expectations.        

The airline recorded a net loss of 42 mn pounds for the six months to the end of September and said passenger numbers were down by almost four per cent.         

BA chief executive Willie Walsh said: "This is a good performance given the incredibly difficult trading conditions. The six-month period will be remembered as the bleakest on record.        

"The period was hit by a crisis in the banking sector, record fuel prices and several airlines going out of business."         

BA said it was confident it would make a "small profit" for its 2008-09 financial year even though fuel costs were expected to total about three billion pounds, a rise of more than 50%.         

The airline said that although oil prices had decreased sharply in recent weeks it would not see the benefit because of the fall in the pound against the dollar and because it had bought in fuel while oil prices were still high.