British Airways: €854 mln in gross profit in H1 2007

The British operator registered profit before taxes worth £593 million (€854 mln) for the April-September 2007 period, up 26 percent from the 2006 similar period, when gross profit amounted to £471 mln (€678.5 mln).

"Our cost performance was excellent, helped by the weak US dollar," said Willie Walsh, company CEO, who added that total costs dropped by £150 mln (€216 mln).

Walsh also said that BA is still determined to acquire the Spanish Iberia air transport group, through a consortium. "We are still working on finalizing the financing on Iberia," said the CFO of British Airways, Keith Williams, quoted by Reuters.

The British operator also announced that it will maintain its operating margin at a minimum 10 percent, planning to reach 12.5 percent in H1 2007 fiscal year. British Airways estimates spending (excepting fuels) worth £100 mln (€144 mln) for the entire fiscal year, down from previous annual estimates, due to the depreciation of the dollar.

"Fuel costs remain a major challenge and our fuel bill for the year is expected to top two billion pounds [2.8 billion euros] for the first time," said Walsh.

The company's revenue in Romania could increase by up to 10 percent in the April 2007-March 2008 financial year from the previous year ending in March 2007, according to the company's local market Commercial Manager, Emil Delibashev. The increase will be sustained by rapid development of the market in this part of Europe.

"Romania is one of British Airways' markets with the highest growth rate in this part of Europe. We have observed an increase in business and pleasure travel," Delibashev told Business Standard.

The British airline could offer flights between the city of Cluj and London’s Gatwick Airport as of next spring, the BA official indicating that Transylvania has great development potential.

BA announced this fall that passengers traveling between Bucharest and London can print their plane tickets at home, after making online reservations.

The British companys’ competitors on the Romanian market are Compania Nationala Tarom, Air France-KLM, Lufthansa, Swiss, Alitalia, and Delta Airlines.