British Airways reported record half-year profits of £593 million despite the high price of fuel, a fall in passenger revenue and a 1% drop in average load factors.
BA’s pre-tax profit for the six months to the end of September rose from £471 million a year ago, with operating profit for the period showing a similar increase from £442 million to £556 million.
An operating margin of 12.5% puts the carrier in line to hit an annual margin of 10% for the first time, despite BA’s annual fuel bill being likely to top a record £2 billion.
Despite the good figures, BA’s load factor fell to 78.4%. Its revenue was also down 0.8% to £3.9 billion, although passenger numbers rose slightly, reflecting the pressure on fares.
In a statement BA described economy traffic across the North Atlantic and in Europe as “soft”.
Chief executive Willie Walsh predicted an imminent end to restrictions on hand luggage at UK airports, although it is feared this may be limited to airports and security channels with the latest scanners.
Walsh said the one cabin-bag rule in place since August 2006 had produced a 15% increase in hold baggage, putting particular pressure on BA’s baggage-handling operation at Heathrow.