British Airways filed an application with the U.S. Department of Transportation "for permission to operate services between any point in the United States and any point in the European Union

," following the signing of a new air treaty between regulators from those two markets. BA also acknowledged "breaches" to its competition compliance policy related to discussions with competitors on fuel surcharges, including passenger surcharges for flights between the United Kingdom and the United States. As a result, BA is prepared "to make a provision ... of £350 million (US$692 million)" to address "potential government fines" in several countries. BA announced a pre-tax profit of £611 million (US$1.2 billion) for its fiscal year ended 31 March 2007, down slightly from a year earlier.