PROFITS STILL SKY HIGH

British Airways owner IAG posted soaring profits despite taking a multi-million-pound hit from the IT debacle in May.

It’s estimated the total bill in compensation and baggage claims related to the IT meltdown over the bank holiday weekend will come to £58million. Around 75,000 BA customers were affected.

Chief executive Willie Walsh said: “We have apologised. We didn’t want it to happen but it was an isolated event.”

However, first-half profits climbed 37% to £871m, helped by lower fuel costs, on revenues up 0.9% to £9.7billion.

Passenger numbers rose 4.6% to 48,806 buoyed by a strong Easter.

Gatwick Airport is splashing out £1.15billion over the next five years to grow passenger numbers from 45 million to 50 million per year. It includes expanding departures lounges, additional car parking and improved access for public transport.