Business | Aviation
British Airways still expects profit in '09
British Airways expects to end the current financial year to March 2009 with a small profit despite being pressured by rising fuel costs and the global economic downturn, Robbie Baird, the UK-based carrier's general manager for Asia-Pacific said here on Wednesday.
- By Himendra Mohan Kumar, Staff Reporter
- Published: 23:56 November 26, 2008
- Image Credit: Supplied picture
- Mohammad Al Bulooki, vice-president of Aeronautical Revenue & Airline Marketing, Abu Dhabi Airports Company, with Baird at the ceremony celebrating British Airways' 40th anniversary of services from Abu Dhabi.
Abu Dhabi: British Airways expects to end the current financial year to March 2009 with a small profit despite being pressured by rising fuel costs and the global economic downturn, Robbie Baird, the UK-based carrier's general manager for Asia-Pacific said here on Wednesday.
"Our fuel bill was $2 billion (Dh7.35 billion) last year and is estimated at $3 billion for this year," said Baird, who was in Abu Dhabi to mark British Airways' 40th anniversary of services to Abu Dhabi.
He said British Airways remains in a cash-rich position at a time when more than 30 airline companies have gone out of business.
"We have taken steps to come out of difficult times in good shape," said Baird. "Our hedging of oil is all below $100 a barrel. For the first half of this (financial) year (April-September), our operating profit was £140 million (Dh789 million) compared with £567 million for the corresponding period last year," he added.
Middle East routes
Baird said British Airways hedged about 77 per cent of its fuel. "We saved hugely in the first half of the year due to hedging," he added.
Furthermore, the first of the Airbus A380 planes will be delivered to British Airways in 2012, he added.
Baird said British Airways is currently flying 56 times a week to the GCC countries.
Separately, British Airways said in a statement it will resume flights from Riyadh and Jeddah to London Heathrow from next March 29.
"The airline will fly five times each week from both Riyadh and Jeddah to Heathrow Terminal 5. Flights to Riyadh will operate with a Boeing 777 and Jeddah flights will be with a Boeing 767," said the statement.
Robert Boyle, British Airways commercial director, said: "Resuming these flights makes commercial sense. The oil market is increasingly important globally and inward investment into Saudi Arabia has risen considerably in the last couple of years.
"We can start these flights now because the aviation market between Britain and Saudi Arabia has recently been liberalised."
Paul Starrs, British Airways commercial manager Middle East, added: "The Middle East is an important growth market for the airline and we are delighted to resume flights to the Kingdom of Saudi Arabia, where we continue to have a loyal customer base."
British Airways suspended services to Riyadh and Jeddah in March 2005 due to poor commercial performance on the route.
Next summer, British Airways will fly to 150 destinations. Through Heathrow's state-of-the-art Terminal 5, customers flying from Saudi Arabia can benefit from many same-day connections to Europe and the United States, including flights to New York, Houston and Dallas.
Flights are available for sale from Thursday at fantastic launch fares to London and beyond. Customers can find out more information and book flights at www.ba.com.
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