British Air Reports Its Worst Annual Results

British Airways said its fiscal fourth-quarter loss widened because of higher fuel prices and greater competition, leaving Europe’s biggest airline with its worst annual results ever. The company’s losses from operations widened to $245 million in the latest quarter from a loss of $156 million in the year-earlier period. Analysts expected a loss of $277 million. British Airways has been plagued all year by stiff competition from low-cost airlines in Europe, surging fuel prices and fare discounting prompted by oversupply on North Atlantic routes. BA raised the prospect of not meeting targets for 10% operating margins by 2003 if problems with fuel and the pound persist. For the year, the carrier reported a loss from operations of $268 million, contrasted with a profit of $228 million in the previous year. British Airways said it improved revenue per passenger by 3.3% in the latest quarter as it filled more business-class seats. The company is betting on its plan to swap big planes for small ones to focus on business passengers, cost cuts and a series of e-commerce ventures to drive a rebound.