Regional airline Flybe has reported a 131 per cent increase in underlying profit before tax to £35.4 million for the year following the integration of BA Connect.
Pre-tax profit for the first quarter was up 14 per cent to £30.4 million, the company said, despite the rise in aviation fuel prices.
The company said buying new aircraft has reduced its fuel bill by 28 per cent since 2002 - a saving of £33 million a year.
Passenger volumes are also up, by 35 per cent to seven million, Flybe added.
Chairman Jim French said: "Flybe became one of Europe's largest regional airlines in 2007/08 in what was a transformational year for the business as we successfully integrated and realised the benefits of the acquisition of BA Connect."
Flybe said as a regional airline, it is less reliant on discretionary leisure spend, making it a stronger proposition.
The industry is undergoing consolidation and several airlines have already gone under.
In May, Isle of Man airline EuroManx ceased operations, leaving the routes to Flybe.
"The combination of our long-term strategy, focussed management actions and strong cash position gives us a major opportunity to maximise the opportunities that will surely come as the industry enters a period of consolidation," Mr French added.
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