The chief financial officer of British Airways has criticised accounting measures for contributing to the £1.2bn (€1.3bn) increase in the company’s pension deficit over the last year, but rising bond yields helped soften the blow by reducing its schemes’ liabilities.

In a presentation to investors this morning Keith Williams said that the BA schemes' shortfall increased to £2.9bn in the year to March 31. The announcement came as the airline group revealed a record operating loss of £220m over the period.