Profits went up in spite of a 44% rise in fuel costs and a 7% increase in staff costs because of BA's pension scheme deficit.
BA said new low fares had made more short-haul traffic and it had still been able increase its profit margin, which rose to 9.1%, compared with the 8.5% margin earned in the first quarter of 2005.
"On short-haul, our new low fares have been a big success," said BA chief executive Willie Walsh.
"While competition in this market is brutal, I am delighted to see we are winning customers with record seat factors," Mr Walsh added.
However, he warned that market conditions were set to get worse in the second half of the year as airlines became more competitive with their prices.
