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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.
Limits on what passengers could take on board flights and regular searches caused chaos at leading airports. The measures, which introduced strict limits on hand luggage and regular searches, caused widespread disruption.
BA suffered a fall in profits in the three month period including August, but over the six-month period to 30 September, profits rose 1.6% to £371m. 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.
BA also revealed plans to sell its loss-making regional airline BA Connect to rival Flybe. The carrier also revealed plans to sell its loss-making regional airline BA Connect to rival Flybe.
Security row
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.
The introduction of tougher security measures at airports in the wake of August's alleged bomb alert were fiercely criticised by leading airlines. Security row
Ryanair is seeking compensation from the government after a row about how airports operator BAA handled security during the crisis. Tougher security measures were introduced in August after police disrupted an alleged plot to blow up planes flying from the UK.
BA said the cost of the terror alert, combined with losses relating to BA Connect and high fuel prices, pushed its profits down 27% to £176m in the three months to the end of September. 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.