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| BA reports large jump in profits | BA reports large jump in profits |
| (30 minutes later) | |
| British Airways has reported a 45% rise in annual profits but warned that economic uncertainty and sky-high fuel costs pose challenges. | |
| The airline said profit before tax totalled £883m in the 12 months to 31 March, and added that staff would share a £35m bonus. | The airline said profit before tax totalled £883m in the 12 months to 31 March, and added that staff would share a £35m bonus. |
| BA boss Willie Walsh described it as an "outstanding financial result". | BA boss Willie Walsh described it as an "outstanding financial result". |
| However, the airline also said that problems at Heathrow Terminal 5 would hurt its earnings this year. | However, the airline also said that problems at Heathrow Terminal 5 would hurt its earnings this year. |
| 'Volatile market' | |
| BA said the first quarter of the current financial year would be particularly difficult, with crude oil prices now at $115 a barrel - more than double the $58-a-barrel price seen a year ago. | |
| The airline's bill for the six million tonnes of jet fuel it uses in an average year was £124m higher than the previous year, despite significant hedging and a weaker dollar. | |
| However, total operating costs were down 0.7% as a result of lower staff costs. | |
| "We operate in a volatile market and this year has been no different," Mr Walsh said. | |
| "We have continued to work hard on our costs savings to deliver these strong results." | |
| Unveiling its results, BA said that shareholders would receive their first dividend since 2001. | |
| It also forecast that revenue would rise by about 4% in the current financial year. | |
| Tough year | |
| British Airways has been beset by problems this year. | British Airways has been beset by problems this year. |
| In addition to high fuel prices, its pilots have threatened to strike over the launch of a new subsidiary and the opening of Terminal 5 was regarded as a disaster. | |
| Staff at the new terminal were not able to get into work, thousands of bags were mislaid and flights were cancelled. | Staff at the new terminal were not able to get into work, thousands of bags were mislaid and flights were cancelled. |
| "The delayed transition to Terminal 5 affects both costs and revenue," BA said. | |
| In early April, the airline said that the chaos surrounding the opening of Terminal 5 had so far cost about £16m. |