updated 9/5/2006 2:04:58 PM ET 2006-09-05T18:04:58

British Airways PLC said Tuesday the terrorism scare last month that grounded thousands of its flights cost the airline 40 million pounds, or about $76 million.

The carrier said the extra expense came from lost revenues — it canceled around 1,280 flights during the height of the alert — and the cost of hotels, catering and baggage repatriation for passengers whose flights were canceled.

The airline added that there has been some impact on forward bookings since the disruption, largely because of ongoing heightened security measures at Britain's airports.

"The overall level of bookings has returned to levels experienced last year, but is still weaker than the trend of the past few months," BA said in a statement. "The recovery of premium and non-premium transfer traffic, for example, is lagging due to the limitations on carry-on baggage at London."

BA is the first airline to reveal a cost estimate for the alert that crippled the country's airports last month.

The trans-Atlantic route was the target of an alleged plot to blow up as many as 10 aircraft with liquid explosives that was revealed by the government on Aug. 10, sparking tough new security regulations that banned all hand luggage and increased passenger searches.

Those measures have since been eased, but restrictions still apply on hand luggage — all liquids, including toiletries, remain banned.

Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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