BA sets millions aside for fines

British Airways has set aside £350 million to cover potential fines and claims relating to a breach of competition law.

It was revealed last year that BA fell foul of regulations by discussing fuel surcharges with competitors.

The airline made the announcement while revealing annual pre-tax profits of £611 million, down from £616 million a year earlier.

At an operating level, BA said it had achieved strong results in a "challenging year" after annual operating profits hit £602 million.

While the figure was better than City expectations, it still came in short of the £694 million seen a year earlier after BA saw a £350 million hike in fuel costs.

Increased security measures, fog and cabin crew disputes also impacted on the results.

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