BRITISH Airways has reported a massive jump in profits over the past year.

Pre-tax profits for the year to March 31 came in at £150m, against a profit of just £5m the previous year.

Rod Eddington, BA's Australian chief executive who took over at the helm last May, charged with lifting BA out of turbulence, said: "This is an encouraging set of figures showing that our business strategy is delivering results."

Operating profits more than quadrupled to £380m, despite fuel costs coming in nearly £300m higher than the previous year, while turnover rose nearly four per cent to £9.28bn.

The airline said the profits rise reflected its new aircraft fleet, successful new products - especially its Club World flat beds for business-class passengers - and cost cuttings.

It marks a turnaround in fortunes for BA, which had last year been hit by fierce competition from rivals, costs of restructuring and higher fuel prices.

However, the airline has cut back capacity on routes and targeted higher spending passengers, as well as bringing in new services such as the flat beds.

It said that during the past year, passenger capacity was down 3.3 per cent, while passenger yields were up 7.7 per cent - the biggest year-over-year rise since its 1987 privatisation.

Its fleet of aircraft decreased by 28 during the year to 338.

Commenting on cost reduction measures made over the last year, Mr Eddington said the group had made "some useful savings across the business", including in finance, catering costs, and a reduction of staff across the business.

He said the firm could continue to see reduction in numbers, although declined to say how many could be affected.

BA said as it cut capacity over the next two years, cost control would be a prime focus.

However, on its wider strategy, the airline held off announcing a sale of Go, its budget airline which is based at Stansted airport, in Essex.

Mr Eddington also said he was confident of getting Concorde flying again by late summer.