Euro airlines continue to do WELL!
BA profit rises, revenue forecast upped
Underlying costs seen up 1% on summer Heathrow strike
By Aude Lagorce, MarketWatch
Last Update: 7:03 AM ET Feb. 3, 2006
LONDON (MarketWatch) -- British Airways PLC on Friday posted a 1.7% rise in profit on a promotion-driven pick-up in traffic and a smaller-than-expected decline in fares. The airline also lifted its revenue forecast for the year on expectations ticket prices will rise.
Europe's third-largest airline said third-quarter net income rose to 117 million pounds ($208 million) from 115 million pounds a year earlier.
Operating profit jumped 29% to 175 million pounds, higher than consensus forecasts.
Sales climbed 8.8% to 2.13 billion pounds on promotions and increased business traffic. Passenger traffic rose 3.3% in January, with demand from premium passengers climbing 7.8%.
"These are encouraging results showing we're making steady progress in strengthening our position," Chief Executive Willie Walsh said in a conference call with journalists. "The mix in our traffic is still very positive."
Average fares slipped 1.5% in the quarter, a decline Walsh said was less than expected.
Of European rivals, No.1 Deutsche Lufthansa (DE:823212: news, chart, profile) climbed 1.8% and No.2 Air France-KLM (FR:003112: news, chart, profile) (AKH:
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