according to the company's annual report.

At March 31, 1995, the company reported retained profit of $207 million compared to $265 million a year earlier.

Annual dividends were $188 million compared to $167 million a year earlier.

Pre-dividend profits were off nine percent at $395 million compared to $433 million a year earlier.

After tax profits were down despite an increase in operating profit of 32 percent to $976 million from $739 a year earlier.

Turnover rose to $11.3 billion from $10.4 billion, an increase of about nine percent.

Pretax profit was reduced by the exceptional item resulting from the board's decision to make a provision of half the cost of British Airways investment in USAir Group, Inc., said British Airways' chairman Sir Colin Marshall.

The provision, made against the company's investment in USAir, totalled $198 million.

After tax but before the exceptional item, earnings per share were 62 cents.

After the $198 million investment, earnings per share were 41 cents per share.

Capital and reserves rose to $3.3 billion from 2.7 billion, an increase of 22 percent.

The group's fleet of 283 aircraft carried over 35 million passengers and 666,000 tonnes of cargo and flies to 194 destinations in 82 countries.