International Airlines Group - the parent of BA, Aer Lingus and Iberia - has reported an operating profit for the first half of the year of €975m.
This is up by 37.3% from €710m on the same period last year and includes a foreign exchange impact of €44m.
The company generates a large amount of revenue in sterling from its BA operations but it reports in euro.
IAG also said it paid out €65m in additional compensation fees and baggage claims related to a high-profile IT meltdown over the spring bank holiday weekend.
The IAG results also show Aer Lingus made a profit of €59m between January and June, which was up from €42m for the same timeframe in 2016.
Aer Lingus’ capacity increased through the annualisation of its expansion across the North Atlantic, while the former Irish flag carrier saw a slight increase in productivity.
IAG had a cash pile of €7.9 billion at the end of June, up from €1.5 billion at the same time in 2016. Aer Lingus accounted for €1.2 billion of the total.
The group is guiding double-digit growth in operating profit for the full year at current fuel prices and exchange rates.
Commenting on the results, IAG Chief Executive Officer Willie Walsh said: "The underlying trend in unit revenue improved, benefiting partially from Easter and a weak base last year.
"Non-fuel unit costs before exceptional items are up, at constant currency. These costs include the financial impact of the power failure which affected British Airways’ customers.
"In June, LEVEL started long-haul flights from Barcelona to four destinations. Sales continue to be well ahead of our expectations. We’ve ordered three additional aircraft and are considering other European bases for the operation."
