BRITISH AIRWAYS SEES FIRST QUARTER RECOVERY
British Airways Plc's <BAB.L> May
passenger and cargo traffic figures provided evidence of
recovery from last year's setbacks and this trend will be
reflected in first quarter results due in August, chairman Lord
King told the annual meeting.
    Earlier this month, the newly-privatised airline reported a
29 pct rise in passenger traffic figures for May, with cargo
traffic up 22 pct.
    In the year to March, British Airways reported a drop in
pre-tax profits to 162 mln stg from 195 mln previously.
However, King said this result was satisfactory, considering
the difficulties posed by the Chernobyl disaster and the U.S.
Raid on Libya.
    He said British Airways intended to return its tour travel
operations to profitability, when questioned by shareholders.
    In 1986/87, this division reported an operating loss of
nine mln stg, the fifth year of losses. However, he said the
group might reconsider its course of action if a turnaround
seemed unlikely in the long-term.
 Reuter
