Friday, 1 February 2008

Healthy profits for British Airways

Despite rising fuel costs and consumer slowdown, British Airways has still reported healthy profits for the last nine months of 2007, with pre-tax profits at £788 million, up 34.9% from the same period of 2006.

Fuel costs in the first six months of the period fell by £36 million, however fuel costs rose for the last three months to £72 million. The figures come less than two months before the opening of Heathrow's new Terminal 5, which BA hopes will improve punctuality and baggage performance.

British Airways reported strong pre-tax profits for the last three months of 2007 at £195 million, which is 72.6% up from £113 million in the same period of 2006.

British Airways Chief Executive, Mr Willie Walsh, said "This is another good set of results despite soaring fuel costs and difficulties in the market. The opening of Terminal 5 is now less than two months away and the public trials and previews for our Executive Club members have been very successful."

British Airways added that the weakening US dollar had contributed to a £101 million fall in its costs over the nine months. (source: BBC News)

Google reported disappointing profits in the last quarter with profits up at only 17% to $1.21 billion (£608 million) for the three months to the end of December. Some analysts had been hoping for stronger profit growth and its shares fell sharply in after hours trading, which brings the total to more than 18% so far this year. This is prove that Google is not immune to an economic slowdown in the US. Google's sales for the quarter were $3.39 billion (£1.7 billion), up 52% but not as much as were hoping for. (source: BBC News)

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