British Airways Blames Fuel for Profit Dip

British Airways PLC said Friday that high fuel costs contributed to a 41 percent drop in third-quarter earnings, but added that passenger numbers rose 4.3 percent last month.

BA said net profit in the three months ending Dec. 31 fell to 49 million pounds (US$92 million; euro71 million) from 83 million pounds in the same period a year ago. Total sales rose 4.3 percent to 1.97 billion pounds (US$3.7 billion; euro2.86 billion) from 1.89 billion pounds.

Forbes.com
Chief Executive Rod Eddington described the quarterly results as “respectable” given a 47 percent rise in fuel costs, which increased to 330 million pounds (US$621 million; euro479 million). The company said the rise was partially offset by fuel surcharges.

“Our focus remains on reducing controllable costs and debt while continuing to invest in our products,” Eddington said.

BA said the number of total passengers carried in January increased to just over 2.6 million from 2.5 million in the same month last year.

The quarterly results beat analysts’ forecasts, and shares in BA rose 3.5 percent to 274 pence (US$5.16; euro3.98) Friday morning on the London Stock Exchange.