British Airways (BA) showed today it was continuing to turn around its business and improve profits but warned that it expects this year to be "tougher" than last.
The group said pre-tax profits for the three months to December 31st came in at £25 million sterling (€39.1 million), against losses of £160 million the same time the previous year. Turnover edged up 1 per cent to £1.86 billion.
BA added that it expects its current financial year to be profitable provided there is not attack on Iraq.
But the group warned it expected the business environment in 2003 to be tougher than last year and is still not anticipating any growth in revenues.
"Forecasting revenue against the backdrop of the threat of war, increasing competitive pressure and an uncertain economic outlook is difficult, but at this stage we anticipate no revenue growth over the next 12 months," the group said.
BA has been hit hard by the slump in demand for air travel following the September 11th terrorist attacks and has faced competition from budget airlines.
In May 2002 it reported its worst set of results since privatisation 15 years ago, with full-year losses of £200 million.
PA