AIRLINES : British Airways’ Profits Plunge

British Airways today reported a 72% slump in pretax quarterly profits, citing the Persian Gulf War and recession for triggering financial losses and major cutbacks.

BA, one of the world’s largest international carriers, said Monday that it plans to eliminate 4,600 jobs worldwide and put 2,000 other staff on half-pay.

In reporting the losses, BA cited rising costs and slumping passenger numbers due to the Persian Gulf War and deepening recession in major markets such as Britain and the United States. Its pretax profits slumped to $40 million in the third quarter ended Dec. 31, while revenues edged up to $2.4 billion from $2.3 billion.

The British-flag carrier said it ran into substantial operating losses in the quarter as air traffic fell sharply. BA said its bookings fell 20% after the start of the Gulf War.