British Airways today posted half-year profits of £335 million, at the top end of expectations, and said it had made progress towards becoming a "more robust airline".

The figure for the six months to September 30 compared with £60 million for the same period last year.

For the three months to September 30 the flag carrier made a pretax profit of £220 million, up from £105 million for the same period last year when a wildcat strike by Heathrow check-in staff cost the airline £40 million.

Cost-cutting measures and an improvement in passenger numbers boosted proiftability and helped to offset a 12 per cent hike in fuel costs compared with a year ago.

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 per cent 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 per cent as wage awards and increased pension contributions more than offset savings from job cuts.

BA has reduced its workforce by more than 13,000 as part of a Future Size and Shape strategy unveiled by Mr Eddington in the wake of the terror attack on September 11 2001.

Merrill Lynch reiterated its "buy" stance on the shares in light of the figures.

In a note to clients, the broker said operating profits were boosted by the fuel surcharge and the hedging of fuel costs.

Merrill added that its current year operating profit forecast of £450 mln "looks unlikely to be altered materially".

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