British Airways today said it had made progress towards becoming a "more robust airline" after unveiling half-year profits of £335 million.

The figure for the six months to September 30 compared with £60 million a year earlier and included profits of £220 million over the final three months.

Cost-cutting measures and an improvement in passenger numbers helped the performance, although fuel costs were 12% higher than last year.

Chief executive Rod Eddington said the company's net debt figure of £3.3 billion was now the lowest it has been since 1993.

He added: "We are making steady progress in building a more robust airline. Rising fuel costs, however, are expected to continue and remain a challenge along with employee costs."

Turnover lifted 2.2% in the second quarter to £2.03 billion, although more expensive fuel meant operating expenditure was in line with last year.

BA also said employee costs rose by 7.7% as wage awards and increased pension contributions more than offset savings from job cuts.

BA has reduced headcount by more than 13,000 as part of a Future Size and Shape strategy unveiled by Mr Eddington in the wake of September 11.

Other cost-saving initiatives have seen the introduction of online printed flight boarding cards, which BA said were now accepted at 31 airports in the UK and Europe. As a result, selling costs at the airline fell 17.6% on last year.

Today's figures were at the top end of market expectations, although BA told the City that all its market segments remained price-sensitive. It has stuck by forecasts for an improvement of between 2% and 3% in revenues for the full year.

And it warned fuel costs for this year were likely to be £245 million more than a year ago, although it added that passenger and cargo surcharges at £160 million were likely to partially offset this rise.

At an operating level, profits were £240 million, compared with £195 million a year earlier. The company will not be paying shareholders a half-year dividend.