British Airways (BA) has posted a fall in third-quarter profits after higher fuel prices increased costs but has raised its outlook for full-year revenues.
The airline warned today that yields - average revenues per passenger - were still expected to decline but sales would be slightly better than it forecast previously.
BA had previously forecast a 2 to 3 per cent lift in full-year revenue.
Analysts said it was a solid result, with an unexpected boost to revenues from cargo, but they remained concerned about falling ticket prices, and high fuel and employee costs.
BA said pre tax profit for the three months to the end of December was £75 million sterling, compared to £125 million a year ago.
Fuel costs in the period increased by £106 million as flagged by the company after oil prices hit record highs last year. Part of the burden was offset by revenue from surcharges on passenger tickets and cargo.
Employee costs increased 3.2 per cent after salary increases and higher pension contributions.