British Airways has reported a fall in profits in its third quarter to the end of December, hit by higher fuel costs and a series of problems which knocked £40m off its revenue.
Pre-tax profits in the three months were £113m, compared with £166m a year earlier. Revenue from BA's continuing businesses was 0.5% higher, but this was outweighed by a 3% rise in costs.
Chief executive Wiilie Walsh described the results as 'mixed', pointing out that fuel costs had jumped by 11% compared with a year earlier.
He added that revenue had been affected by a number of factors, including the impact of security measures at UK airports in August and more restrictive rules on hand baggage, which had hit transfer volumes at Heathrow.
Mr Walsh said the baggage system at Heathrow's Terminal 4 failed twice in December and severe fog led to the cancellation of 800 flights before Christmas.
The chief executive apologised for the inconvenience suffered by customers, saying their patience and loyalty had been tested, with the recent threat of industrial action adding to uncertainty.
BA chairman Martin Broughton said the threat of industrial action would lead to a revenue loss of £80m in the fourth quarter.
For the first nine months of the year, turnover was up 6.5% at £6.6 billion and pre-tax profits rose from £518m to £584m.
British Airways was trading up 1.9% at 556.25p on the FTSE100 in London.
