Rising profits for British Airways and its lowcost rival Easyjet means that two of Europe's biggest airlines are riding high despite soaring fuel costs. BA, Europe's second largest carrier, has reported a 36 percent rise in first quarter profits. And chief executive Rod Eddington says he expects revenue for the year to March two thousand and six to grow by five and a half to six and a half, a percentage point up on previous forecasts. This is despite an annual fuel bill of 754 million euros, 15 percent up on an earlier forecast.

The excess has been offset by cost savings, fuel surcharges, and growth in first- and business class travel. Lowcost carrier Easyjet said its pretax profits were also likely to exceed earlier expectations at 90 million euros, matching its figure for last year. Earlier this week its lowcost rival Ryanair also beat forecasts with record first quarter profits, achieved without imposing fuel surcharges. The price of oil has risen by more than 40 percent since the start of the year, hitting airlines particularly hard.