British Airways reported a 26 per cent increase in first-half profit this morning, helped by cost cutting, and said its business and first-class market remained strong.
"Our cost performance was excellent, helped by the weak US dollar," said chief executive Willie Walsh. "Total costs were down £150 million [sterling]."
Profit before tax was £593 million ($1.23 billion) in the six months to September 30th, compared to £471 million a year earlier.
"What we see is premium bookings remaining strong," Mr Walsh told reporters. "The North Atlantic non-premium market is still soft but other non-premium markets are more encouraging."
Mr Walsh said BA remained committed to the consortium looking at buying Spanish airline Iberia. "We're still working on finalising the financing on Iberia," added finance director Keith Williams.
The airline said it was on track with its goal of keeping operating margins at 10 per cent or more, having hit 12.5 per cent in the first half.
It predicted costs excluding fuel were now expected to be £100 million lower than previously forecast in the full year due to the weak dollar. Fuel costs are expected to be up by 100 million pounds on last year.
"Fuel costs remain a major challenge and our fuel bill for the year is expected to top £2 billion for the first time," said Mr Walsh.
"The fuel surcharge is constantly under review, but there's no plans to adjust it at this moment," he added.
Mr Walsh brushed off media reports that BA's plans to start flights to the United States from European cities could be threatened by opposition from its pilots or by plans to cut flight capacity at New York's JFK airport.