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| British Airways profits plummet | British Airways profits plummet |
| (about 1 hour later) | |
| Half-year profits at British Airways have fallen 91.6%, with the airline blaming "incredibly difficult trading conditions" for the plunge. | Half-year profits at British Airways have fallen 91.6%, with the airline blaming "incredibly difficult trading conditions" for the plunge. |
| BA said pre-tax profit totalled £52m ($81.6m) between April and September, down from £616m a year earlier. | BA said pre-tax profit totalled £52m ($81.6m) between April and September, down from £616m a year earlier. |
| Willie Walsh, BA's chief executive, said the period would "be remembered as one of the bleakest on record". | 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. | 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. | "The industry continues to face very difficult trading conditions on the back of a weak economic environment," Mr Walsh said. |
| FROM THE TODAY PROGRAMME More from Today programmeAnalysis: is the worst over? | FROM THE TODAY PROGRAMME More from Today programmeAnalysis: is the worst over? |
| However, he was confident that the airline would be able to make a "small profit" for the financial year. | 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 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. | The reduction includes the suspension of services from Heathrow to Dhaka and Kolkata, and Gatwick to Dublin and Zurich. |
| 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. | 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. |
| Aviation fuel prices move in tandem with crude oil prices, which have more than halved since hitting a record $147 a barrel in July. | Aviation fuel prices move in tandem with crude oil prices, which have more than halved since hitting a record $147 a barrel in July. |
| However, BA added that hedging and a weaker pound would offset lower prices to some extent. | However, BA added that hedging and a weaker pound would offset lower prices to some extent. |
| Low-cost rival Ryanair also reported a sharp fall in profit earlier this week. | Low-cost rival Ryanair also reported a sharp fall in profit earlier this week. |
| Mr Walsh said that Heathrow Terminal 5 was now running smoothly after a disastrous opening earlier this year. | |
| He also said a third runway for Heathrow was "critical" for the future of the UK economy. |