This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6112252.stm
The article has changed 7 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
BA's terror alert bill hits £100m | BA's terror alert bill hits £100m |
(20 minutes later) | |
Tough airport security measures brought in after August's terror alert have cost British Airways £100m. | Tough airport security measures brought in after August's terror alert have cost British Airways £100m. |
The measures, which introduced strict limits on hand luggage and regular searches, caused widespread disruption. | |
BA said profits in the three month period including August fell 27%, but over the six-month period to 30 September profits rose 1.6% to £371m. | |
The carrier also revealed plans to sell its loss-making regional airline BA Connect to rival Flybe. | |
BA Connect, which handles most of BA's domestic and European routes that do not fly out of Heathrow or Gatwick, is due to be sold next year for an undisclosed sum. | BA Connect, which handles most of BA's domestic and European routes that do not fly out of Heathrow or Gatwick, is due to be sold next year for an undisclosed sum. |
Security row | |
Tougher security measures were introduced in August after police disrupted an alleged plot to blow up planes flying from the UK. | |
Long haul premium transfer and short haul premium traffic continue to be affected by the tighter security arrangements BA statement href="/1/hi/uk/4789593.stm" class="">Baggage advice for UK passengers | |
The move led to cancellations and lengthy delays for air travellers - BA had to cancel 1,280 flights between 10 and 17 August. | |
The new security measures were fiercely criticised by leading airlines, and Ryanair is seeking compensation from the government. | |
However, the ban on liquids being taken in cabin luggage is to be relaxed, the government said on Thursday. | |
Fuel costs | |
BA said the cost of the terror alert, combined with losses relating to BA Connect and high fuel prices, cut its profits to £176m in the three months to the end of September, down 27% on the same point last year. | |
But over the longer six-month period sales rose 8% to £4.6bn. | |
BA's fuel bill for the year as a whole is likely to be £400m - or about 30% higher than last year. | |
This increased cost, added to the financial impact of the security measures at Heathrow and other airports, has led BA to reduce its forecast for annual sales growth by half a percentage point to 4.5%-5%. | |
"Long haul premium transfer and shortfall premium traffic, although recovering, continue to be affected by the tighter security arrangements currently in place," BA said in a statement. |