BA profits ready for lift off

All eyes will be on British Airways’ chief executive Rod Eddington on Tuesday when he announces the group’s year-end results.

Mr Eddington took over at BA a year ago, replacing Bob Ayling, after the group reported a slump in profits in one of its most taxing years.

But analysts expect Mr Eddington to have taken the group out of its turbulent period - pre-tax profits are forecast to hit £216 million, soaring up from a pre-tax loss of £244 million 12 months ago.

This is despite the fact that 13.3% fewer Americans flew across the Atlantic on BA in April compared to 2000.

The group put the drop down to the US economic slowdown, foot-and-mouth and a temporary computer problem.

The City will also be eager to hear what Mr Eddington has to say about BA’s budget airline Go.

Last week, speculation abounded that venture capital group 3i was close to sealing a £100 million takeover of Go, which would see current chief executive Barbara Cassani retain her role.

BA’s long-term strategy is to reduce capacity by 20% by 2003 in a bid to increase the proportion of premium and full fare paying passengers using its planes.