British Airways owner IAG reported a 27% jump in annual operating profit on Friday, beating market expectations as it curbed costs and growth in its lucrative transatlantic routes took off.

IAG, the owner of airlines including British Airways, Iberia and Aer Lingus, reported a 27% rise in annual operating profit to 4.4 billion euros.

PROFITS took off at BRITISH AIRWAYS owner IAG last year as fuel costs shrank and it made more money from customers. Passenger revenue increased by 3.1 per cent, while fuel overheads fell by 5.2