BA sees pre-tax profits soar

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The profits increase comes despite the rocketing cost of fuel, which the group said will cost it a record £2 billion over the full year.

The weak dollar has also been a challenge for the group, with BA revising full year revenue growth down from 4% to about 3% to 3.5%.

But the dollar's weakness has also helped trim costs, excluding fuel, by 4% in the six months to September 30, and BA hopes full-year costs will be £100 million less than last year.

BA's profits figure follows a turbulent past quarter for the carrier, which saw the group hit with £270 million in fines from the US department of Justice and Office of Fair Trading for collusion over passenger fuel surcharges.

The 26% hike in pre-tax profits is also in stark contrast to last year's interim results, when BA disclosed a £100 million hit amid the terror scares seen last August that grounded flights and caused widespread disruption.

BA said the carrier's efforts to tackle its cost base had paid off, adding it was on track to achieve its 10% operating margin by next March - a key performance target which would trigger bonus payments for staff.

But Willie Walsh, BA's chief executive, said fuel remained a "major challenge" for the airline.

He stressed BA had no immediate plans to adjust fuel surcharges levied on passengers, although the group announced two hikes in fuel surcharges within six weeks of each other in May and June.

The forecast fuel costs for the year, while breaking the £2 billion mark for the first time, are set to be £20 million less than previously expected, helped by the pound's strength against the dollar.