He may have shed some of the ‘Slasher’ image from his Aer Lingus days but Willie Walsh was always going to be judged at British Airways by his success in tackling the cost base.

Today’s half-year results show that despite myriad controversy in the past year, including union disputes, the restructuring of the staff pension, security chaos and lost luggage, BA is beginning to look that bit leaner.

Despite a burgeoning fuel bill, costs were down £150 million in the first half, unit costs 2.6 per cent lower and costs will be £100 million lower over the full financial year.

BA has cut its revenue growth targets again, but is forecasting that sales will still be at least 3 per cent higher in a market becoming tougher by the day. Growth in premium traffic has pushed yields up half a per cent in the half year.

The challenge over the coming months will be to ensure that BA hits its 10 per cent operating margin target. This could trigger the first dividend payment for six years and lift a share price that is still 27 per cent below its high point in February.

Mr Walsh will be crossing his fingers there are no problems at Heathrow over the remaining 145 days before BA can escape to the relative luxury of Terminal 5. There it is promising that the poor customer service harming its reputation will be a thing of the past.

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