oneworld

British Airways has agreed to pay GBP300m per year into its pension scheme, plus top-ups, under a new plan which leaves room for the airline to pay dividends to owner IAG. IAG said the new funding deal was based on a valuation of the scheme's position at the end of March 2015, which put the technical deficit at GBP2.8b (US$3.4b), compared with the GBP2.7b recorded 3 years earlier. Under the deal, BA will make fixed deficit contributions of GBP300m per year until 2027 - broadly in line with the amount it paid under the previous 3-year term. Depending on its cash levels, it could also pay up to an additional GBP150m into the scheme each year. The deal reassured investors after the company said in July it needed more time to agree the terms. <br/>

Finnair recorded Q3 net profit of E87.6m (US$95.6m), more than doubled from E39m for the year-ago period. The carrier achieved the result on revenue of E640.9m, up 3% on the comparable period last year. However, the airline said the next few months would see increasing uncertainty. Finnair reiterated its previous assessment that its 2016 capacity would grow by approximately 7% compared to 2015, but revenue would grow more slowly. The carrier said market conditions were increasingly challenging, with a rise in fuel prices and market capacity growth continuing to put pressure on yields. “Considering the current market environment, we are satisfied about breaking the record result posted in the comparison period,” CE Pekka Vauramo said. Capacity in Q3 grew 8.4% compared to the same period a year ago. <br/>