British Airways today cut its revenue forecasts following the dollar weakness. Management warned it may miss its 4% sale-growth target by up to 1% and shares fell in early trading.

But the market may have overreacted as analysts continue to expect the company will meet its full-year earnings forecasts.

Andrew Fitchie from independent broker Collins Stewart points out that the weak dollar will result in savings on the cost side too, even despite soaring fuel costs.

Adding that management had re-iterated it was on target to meet its March 10% operating margin target, Fitchie said: 'Consensus earnings for this year is 53.6p, which we believe is broadly based on 2% revenue growth and 10% margin; today’s guidance change is unlikely to move consensus significantly.'

The results revealed that pre-tax profits rose by more than a quarter to £593 million in the first six months. Rising fuel costs are expected to cost the group a record £2 billion over the full year.

Management revised full year revenue growth down from 4% to about 3% to 3.5%. But the dollar's weakness has also helped trim costs, excluding fuel, by 4% in the six months to September 30, and BA hopes full-year costs will be £100 million less than last year.

BA's profits figure follows a turbulent past quarter for the carrier, which saw the group hit with £270 million in fines from the US department of Justice and Office of Fair Trading.

The 26% hike in pre-tax profits is also in stark contrast to last year's interim results, when BA disclosed a £100 million hit amid the terror scares seen last August that grounded flights and caused widespread disruption. Shares fell 10p, or 2.5%, in early trading to 420p.