British Airways (BA) saw earnings rise 36% in the first quarter as first and business class passenger numbers rose.
BA has imposed two fuel surcharge rises this year
The airline said operating profit for the three months to July was £176m ($313.1m), compared to £129m last year.
BA added it thought full year earnings would be higher than forecast, due to favourable exchange rates and increased fuel surcharges boosting revenues.
Europe's second largest airline said it now expected total revenue for the year to March 2006 to grow by 5.5% to 6.5%.
In June, BA increased its fuel surcharge on airline tickets for the second time this year.
It hiked up the surcharge on each long-haul return ticket to £48 ($87) from £32, and increased it to £16 from £10 on short haul flights.
"The continuing strength of the US dollar and increased surcharges have improved the revenue outlook," said chairman Martin Broughton in a statement.
The airline reported strong passenger figures for July, overcoming any possible fear-factor connected to the bombing attacks in London during the month.
Like many airlines BA has had to pass on the cost of increasing world oil prices to its passengers, in the form of surcharges.
And, despite a 37.6% increase in the price of fuel during the three months the airline said it had made savings in other parts of the business.
"They are pretty good numbers, that is clear," said BNP Paribas analyst Nick van den Brul.
"As we saw with Ryanair, the leading players in Europe, the yield and revenue situation is improving at a faster rate than the fuel cost increase," he added.