BRITISH Airways (BA) said yesterday that pre-tax profits soared by more than a quarter to £593m in the first six months of its financial year.

The profit increase comes despite rising costs of fuel, which the group said will cost it a record £2bn over the full year.

The weak dollar has also been a challenge for the group, but it has helped trim costs, excluding fuel, by four per cent in the six months to September 30. BA hopes full-year costs will be £100m less than last year.

The news follows a turbulent past quarter for the carrier, which saw the group hit with £270m in fines from the US Department of Justice and Office of Fair Trading for collusion over passenger fuel surcharges.

The 26 per cent hike in pretax profits also contrasts last year's interim results, when BA disclosed a £100m hit amid terror scares that caused widespread disruption.

However, Willie Walsh, BA's chief executive, said fuel remained a major challenge'' LIFT OFF: British Airways bosses have reported increased profits for the airline.