British Airways, one of the largest carriers in the world, has reported a growth of 45 per cent in its annual profits but said that economic pressures and rising fuel prices create difficulties for further improvement.

The company made a profit of about £883m in the year ending 31st March, which according to BA chief Willie Walsh is an outstanding performance.

Mr. Walsh said that he would not be accepting an annual bonus due to the problems in the opening of Terminal 5 at London Heathrow.

BA said that the impact of problems with the move to Heathrow's Terminal 5 would be seen on its earnings this year.

The company said that with oil prices standing at $115 per barrel, the first quarter of the current financial year would be particularly tough.

Despite considerable hedging and weakness of dollar, the carrier's bill for the 6 million tonnes of jet fuel it requires in an average year was around £124 million higher than it was a year ago. The company's total operating costs, however, were down by 0.7 percent due to reduced staff costs.

The carrier said that shareholders would get their first dividend since the year 2001, and added that its staff would share a bonus of £35 million.

However, BA chief said he had refused to take his annual bonus, which could have been up to £700,000, after taking responsibility for the concerns at Terminal 5 at London Heathrow airport.