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BA's terror alert bill hits £100m | BA's terror alert bill hits £100m |
(about 1 hour 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. | 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. | 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. | 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 | Security row |
Tougher security measures were introduced in August after police disrupted an alleged plot to blow up planes flying from the UK. | 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 Baggage advice for UK passengers href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23417/intraday.stm" class="">See BA shares | |
The move led to cancellations and lengthy delays for air travellers - BA had to cancel 1,280 flights between 10 and 17 August. | 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. | The new security measures were fiercely criticised by leading airlines, and Ryanair is seeking compensation from the government. |
Hand luggage restrictions - which limited passengers to taking one, small bag on board with them - were eased slightly in September although passengers are still limited to taking one item. | Hand luggage restrictions - which limited passengers to taking one, small bag on board with them - were eased slightly in September although passengers are still limited to taking one item. |
However, the ban on liquids being taken in cabin luggage is to be relaxed, the government said on Thursday. | However, the ban on liquids being taken in cabin luggage is to be relaxed, the government said on Thursday. |
Fuel costs | 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. | 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. | 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. | 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%. | 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. | "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. |