British Airways believes its aggressive drive to cut costs is paying off, as it reported pre-tax profits of £65m for its first quarter to the end of June.
The figure was 62.5% higher than the £40m recorded in the same period in 2001. It comes just two months after BA reported its worst set of results since privatisation 15 years ago, with full-year losses of £200m.
The group has been hit by the slump in demand for air travel following September 11 and has also faced intense competition from budget airlines such as Ryanair and EasyJet.
In response it has slashed costs, including cutting thousands of jobs. The cost reductions meant it managed to improve profits despite a 10.7% slide in revenues during the quarter, to £2.05 billion.
Chief executive Rod Eddington said: 'We are only six months into a two year structural change programme. Despite very tough market conditions we are delivering on cost efficiencies.'
But BA cautioned that the travel market was expected to be weak for the remainder of the year, meaning revenues were expected to be lower than in 2001.
