Europes 2nd biggest oil company BP Plc has said their profit fell 53% on lower energy prices.  They have said that there is “little evidence” of a recovery.

Their 2nd quarter net income has fallen to $4.39 billion, or 23.16cents a share, from $9.36 billion, or 49.23cents, in the earlier period.

CEO Tony Hayward of BP said that estimated cost cuts would exceed an earlier target as it increased production to more that 4,000,000 barrels a day.   There has been “significant falls” in the first half and the recovery will be “long and drawn out” as the demand stabilizes said Tony.

An analyst from Panmure Gordon and Co recently said in an interview “I have serious concerns about the operating environment and that the oil price may come under pressure.”

Later this week BP’s rivals will be releasing their results which are Spains Repsol YPF, Total SA of France, Royal Dutch Shell PLC.

U.S oil futures averaged $59.79 a barrel in the 2nd quarter, 52% lower than a year earlier, while gas futures slumped 67%.  NY oil futures have rebounded 53% since the beginning of 2009 and traded at $68.44 today.

Irish flight company Ryanair is cutting the number of flights from Stansted airport by 40%.  This will start this winter from October 2009 to March 2010.

Currently they have 40 aircrafts at Stansted airport and this will be reduced to 24 by winter.

The reason for the cutbacks is because Standsted is one of their most expensive bases.  They tried to persuade BAA to cut hight passenger fees this winter but failed.

The 16 aircrafts to be cut will be moved to other european bases.

CEO of Ryanair Michael O’Leary said “Sadly UK traffic and tourism continues to collapse while Ryanair continues to grow traffic rapidly in those countries which welcome tourists instead of taxing them”.

This just goes to show how damaging the governments £10 tourist tax and BAA high airport charges are damaging the UK tourism and the economy.