Ananova:

British Airways has announced annual pre-tax profits of £883 million, but warned it was braced for a "challenging" year ahead due to sky-high oil prices and following its troubled move to Heathrow Terminal 5.

The airline's profits haul, up nearly 45% on the prior year, saw it meet a 10% profit margin target, triggering a £35 million bonus pool for the airline's 42,000 staff. It is also paying its first dividend since 2001.

But BA warned delays in the move to its new flagship Terminal 5, oil prices that have doubled year on year, and general economic uncertainty, would make the coming year "challenging".