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| Version 4 | Version 5 |
|---|---|
| BA's terror alert bill hits £100m | BA's terror alert bill hits £100m |
| (about 3 hours 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. |
| The gloss has been taken off these numbers following generally higher fuel costs and August's terror alert Richard Hunter, Hargreaves Lansdown Baggage advice for UK passengers href="/1/hi/england/devon/6112848.stm" class="">Flybe buys BA Connect 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 has experienced a turbulent few months. In addition to August's terror alert the airline is facing a confrontation with its pilots over plans to plug its pension gap, and is being investigated by UK and US regulators over alleged price fixing of fuel surcharges. | |
| The carrier 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%. |
| One analyst said that, in addition to security concerns, BA faced further difficulties with its pension deficit and the fact that further cost-cutting measures would be harder to carry through. | |
| "The gloss has been taken off these numbers, following generally higher fuel costs and August's terror alert," said Richard Hunter, head of UK equities at Hargreaves Lansdown. | "The gloss has been taken off these numbers, following generally higher fuel costs and August's terror alert," said Richard Hunter, head of UK equities at Hargreaves Lansdown. |
| But he said the market was still "cautiously positive" about BA. | But he said the market was still "cautiously positive" about BA. |
| "The longer term forecasts for the industry remain rosy." | "The longer term forecasts for the industry remain rosy." |