BA shrugs off fuel price hike to post profit
International Airlines Group, which was formed in January, has benefited from improved demand on long-haul routes, particularly for premium seats, as well as ongoing cost-cutting measures.
Its fuel bill surged to €2.44bn, of which only half was recovered through initiatives such as fuel surcharges. The airline's profit compared with a loss of €419m a year earlier.
Advertisement
Hide AdAdvertisement
Hide AdFormer BA boss Willie Walsh, who is chief executive of the combined group, said he expected "significant growth" in profits across 2011, despite strong competition on short-haul routes. He also expects events in Japan, North Africa and the Middle East to knock profits by up to €100m.
He added: "Against a background of economic uncertainty, London remains a strong market."
BA and Spain's Iberia have retained their brands in the merger, which is expected to save €400m a year by its fifth year.
It is now the third-largest scheduled airline group in Europe and the sixth largest in the world, based on revenues.