BA gains on passenger hopes

FTSE 100 Index closed through the 4700 barrier - up 41 points at 4731.6

British Airways offset the worst first-quarter loss in its history by fuelling hopes that passenger numbers may have stabilised.

Comments from chief executive Willie Walsh about steadier trading over the summer months was enough to lift shares by almost 5% or 6.5p to 140.8p, despite a record loss of £148 million between April and June 30.

The rest of the London market paused for breath after the FTSE 100 Index reached a seven-month high during trading on Thursday. The top flight was 10.5 points lower at 4621.4 by mid-morning.

Spirits have been lifted by recent corporate results, with steady trading from the likes of BT, Rolls-Royce and BSkyB.

Telecoms group BT held on to most of the 13% improvement after it posted better-than-expected first quarter figures and said there were signs of progress at its troubled IT services division. Shares were down 0.3p at 126.6p.

Among other companies reporting on Friday, pest control firm Rentokil Initial jumped 10% after it said its turnaround plan remained on track. It also reiterated its intention to deliver profit growth over the rest of the year as shares climbed 7% or 6.75p to 97.25p.

Rentokil was joined at the top of the FTSE 250 risers board by Rank after the gaming firm reported a better-than-expected 40% increase in half-year profits and said it had seen some stabilisation in trading at its Mecca Bingo arm.

Shares were 9p higher at 78.75p, a gain of 13%.

United Business Media - another firm to report results - rose 44.25p to 415.5p after it increased its half-year dividend and said bookings for major events in the second half were up on a year earlier.

Meanwhile, Luminar shares rose 2p to 142p as the nightclub operator announced plans to raise funds for an expansion drive.