British Airways reported a 28.5 per cent rise in operating profit for the first nine months of its financial year.
Operating profit reached £734 million (€982 million) in the nine months to December 31st, compared with an average forecast of £737 million from analysts, and up from £571 million a year ago.
The carrier said its longhaul premium business was still shrugging off weakness in financial markets.
The carrier said it was launching an all-business-class service next year between London City airport and New York on Airbus A318 aircraft.
The Boeing 777 damaged in last month's accident at Heathrow airport has been written off by underwriters and the insurance claim agreed in full, with no material impact on its results.
The airline said full-year fuel costs were now expected to be more than £100 million above last year's, but would be offset by cost-cutting elsewhere.