BA results give Walsh cause for optimism

NEW British Airways chief Willie Walsh had good news yesterday as the airline beat market expectations with its full-year results.

Pre-tax profits for the year to March were £415 million (€610m), almost double the previous year's figure. Revenues were 3% higher at £7.6bn (€11.1bn), but markets were pleased with news that the company shrugged off high fuel costs to record a marginal profit of £5m in the last three months of the year. Analysts had expected a loss for the quarter.

The improvement was down to a better-than-expected performance in marketing and operating costs, as well as a pick-up in business travel.

Revenues also benefited from a controversial decision to impose a fuel surcharge on tickets to pass on some of the high oil costs.

Mr Walsh, who recently joined the company after stepping down as Aer Lingus chief executive, will take over the reins from Rod Eddington who retires in September.