British Airways, whose third-quarter profits were boosted by sales of business class seats, today said employee and pension costs rose 8.3% in the same period as it prepares to face unions and trustees over its £1.4bn (€2bn) pension deficit next month.

Willie Walsh, chief executive of British Airways, said the airline had come to the end of a staff awareness programme on the implications of the pension deficit and would start a consultation with unions and trustees by the end of March.