(by Ameli Berksman)

The second largest carrier in Europe reported its second-quarter profit to have added 26% as the company cut jobs and reduced costs.

``All market segments remain price sensitive and yield declines are expected to continue. The total revenue outlook for the year to March 2005 is unchanged, with a 2-3 percent improvement driven by volume increases,’’ British Airways said in its statement.

The company’s net income climbed to ₤123 million ($228.4 million) in the year ended September 30, or 11.2 pence per share from ₤98 million, or 8.9 pence per share, in the same period of 2003. Revenue added 2.2% to ₤2.03 billion.

BA forecast for fuel costs was lifted on rising oil prices. "Rising fuel costs, however, are expected to continue and remain a challenge along with employee costs," Chief Executive Rod Eddington said in a statement on Monday.

Around a fifth of the company’s workforce was eliminated since 2001 with the total of 13,082 jobs cut.