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LONDON: British Airways said Friday its annual net profit more than doubled as it cut costs to help offset record high fuel prices.
BA however warned of a difficult future amid an economic downturn and after the catastrophic opening of London Heathrow airport's new Terminal Five which is exclusively used by the British airline.
BA said net profit rose to 680 million pounds in the 12 months to March from 290 million pounds in the year earlier.
Group revenue rose 3.1 percent to 8.75 billion pounds, the airline said in an earnings statement.
"This is an outstanding financial result for the company despite rising fuel prices and significant economic slowdown in the last six months," said BA chief executive Willie Walsh.
"We have achieved our goal of a ten percent operating margin which I am delighted has triggered the reward scheme for our staff. For our shareholders too, it signals the welcome return of a dividend -- the first since 2001," he added.
Looking ahead, Walsh said "the first quarter (to June) will be particularly difficult. Crude prices have risen from 58 US dollars per barrel in the first quarter last year to some US 115 dollars this year.
"The delayed transition to Terminal Five affects both costs and revenue, and will feature in the quarter and full year as we deal with the challenges of the move into the terminal. The full year will also be challenging, against an uncertain economic outlook," added BA's boss.
Heathrow's new terminal opened on March 27 but was immediately hit by problems with its baggage handling system.
It was not until April 8 that BA was able to offer a full short-haul flight schedule in and out of the terminal, which cost 4.3 billion pounds to build.
Almost all of BA's long-haul flights from Heathrow had been due to switch to Terminal Five from April 30 but the change has now been delayed to start in June and last around five months.
The chaos has cost the airline at least 16 million pounds, according to its own estimates, and led to the departure of two senior executives. - AFP/ac
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