The troubled opening of Heathrow's Terminal 5 cost BA boss Willie Walsh his annual bonus yesterday, despite the airline posting record profits.

The chief executive said he felt any award would have been "inappropriate" given the problem-hit move to the new building in March.

Mr Walsh was speaking after unveiling record pre-tax profits of £883m for the year to March 31, up 45% on the previous year.

The performance has triggered a £35m bonus pool for BA's other 42,000 staff, as well as the company's first dividend payment for seven years.

Mr Walsh said: "I felt in the context of the disappointing opening associated with T5 that it would be inappropriate for me to take a bonus despite the excellent financial performance of the company."

Under his remuneration package, he is entitled to a maximum bonus of 100% of salary depending on a series of criteria. During the year to March 2007 he was paid a salary of £625,000.

Mr Walsh said there had been no pressure "whatsoever" from other board members and big investors for him to forego his bonus payment.

Mr Walsh said he felt his position was not under pressure."I feel like I have just won the premier league with these financial results," he added.

The profits rise came despite a year of soaring oil costs which saw the airline's fuel bill top £2bn.

Mr Walsh said: "This is an outstanding financial result despite rising fuel prices and significant economic slowdown in the last six months.

"We have achieved our goal of a 10% operating margin which I am delighted has triggered the reward scheme for our staff. For our shareholders too, it signals the welcome return of a dividend - the first since 2001."

But he warned the current financial year would be challenging due to the prospect of continued high oil prices, the financial fallout from the T5 delays, and general economic uncertainty.

Crude oil remains around the $125-a-barrel mark, twice what it cost a year ago. BA said its fuel bill could be as high as £3bn this year - more than one-quarter of the carrier's full-year costs.

The airline, which uses six million tonnes of jet fuel a year, also revealed it takes a £16m profit hit for every one dollar rise in oil prices.

Citing fuel prices and costs from the T5 delays, BA said that the three months to June 30 would be "particularly difficult".

The airline added: "The full year will also be challenging, against an uncertain economic outlook. As a result, we have reduced capital expenditure and are reviewing capacity, costs and network in the context of the economic pressures and high fuel prices."

Mr Walsh said T5 is "working well" and has received around two million passengers since it opened. A number of long-haul routes, including the airline's blue riband New York service, will start from the terminal on June 5.

The airline's full-year revenues are up 3.1% to £8.75bn. It is forecasting a rise of around 4% in revenues for the existing year.

Steve Turner of union Unite said BA's results were excellent news and he was pleased staff will be sharing the success.

He said: "While we applaud Willie Walsh's decision to forgo his bonus, we need to see BA use these profits to address the ongoing concerns of our members. The uncertain economic forecast for the industry, contentious reorganisation across the company, talk of consolidation with other carriers and the rising cost of living are creating tremendous pressures on the workforce."