Profits plunge near 92 % at British Airways

11-08-2008 | AP

With a reduction in services, the start of flights to Panama seems unlikely.

Panama Star LONDON. BA said pre-tax profit totalled $82. 2m between April and September, down from $974m last year.

Willie Walsh, BA's chief executive, said the period would "be remembered as one of the bleakest on record".

Airlines have been hurt by record fuel prices and the economic downturn is hitting passenger numbers.

"The industry continues to face very difficult trading conditions on the back of a weak economic environment," Mr Walsh said. However, he was confident that the airline would be able to make a "small profit" for the financial year.

The profit forecast encouraged investors and BA's share price was up 15.6%, or 20.30p, at 150.8p in morning trade.

The airline said it would reduce its number of flights by about 1% in 2009 in anticipation of less demand from travellers.

The reduction includes the suspension of services from Heathrow to Dhaka and Kolkata, and Gatwick to Dublin and Zurich.

With the airline predicting a reduction in services, it seems unlikely that the rumored start of flights to Panama will become a reality.

BA said that its fuel costs were 52% higher than a year ago, although it said it was well placed to benefit from the current fall in fuel prices.