Walsh gets pay hike as BA poised to report profit

BA chief executive to get 12% pay rise and £1.65m bonus.

British Airways chief executive Willie Walsh will get a 12 per cent pay rise and a ₤1.65m bonus when he closes the merger deal with Spain's Iberia, according to merger documents published on Wednesday.

The British carrier may report its first profit in two years on Friday. Net income may reach ₤159 million pounds for the three months ended September 30 from a year earlier loss, according to the average estimate of five analysts compiled by Bloomberg.

The last time the airline reported a profit was in August 2008.

From next year British Airways' earnings will be reported as part of the merged entity International Consolidated Airlines Group in euros.

Walsh will be paid a salary of ₤825,000 per year when he becomes the chief executive of International Consolidated Airlines Group.

The salary of chief financial officer Keith Williams will rise by 43 per cent to ₤630,000 per year with a maximum bonus of ₤954,000.

The salaries and bonuses were comparable with that of FTSE 100 executives, BA said.