British Airways today posted a 70% hike in annual profits but warned that sky-high oil prices would cost it an extra £150 million this year.

The airline - which last week raised prices by £5 for a return trip to cover surging fuel costs - said it expected revenues to grow by up to 3% in the current financial year.

Pre-tax profits of £230 million for the 12 months to March 31 were higher than expected in the City, while BA reported strong progress in its drive on costs.

Annual savings of £869 million had been delivered by its Future Size and Shape strategy against a target of £650 million, chiefly through the loss of 13,082 jobs.

Monday May 17, 2004