The British Airways parent saw a year-on-year increase of €15 million for the three months to March 31 - a period which is traditionally the group’s weakest quarter of the year.

Chief executive Willie Walsh said the launch of low cost long-haul carrier Level had been “extremely successful” with sales running ahead of expectations.

The group which also owns Aer Lingus, Iberia and Vueling, expects its operating profit for 2017 to show a year-on-year improvement when plotted against current fuel prices and exchange rates.

Its passenger unit revenue for the quarter fell by 7.2%, down 3.1% at constant currency.

IAG also reported 10% traffic growth in April, with premium carryings up by 7% over the same month last year.

Walsh added: “We’re reporting an operating profit of €170 million before exceptional items which is up from €155 million compared to last year.

“This is a record performance in Q1, traditionally our weakest quarter, with the improving trend in passenger unit revenue continuing.

“The impact of currency exchange was €32 million in the quarter due to the translation of sterling profit into euros.

“In March we launched Level, our new long-haul low-cost airline brand, which starts flights from Barcelona to Los Angeles, San Francisco, Punta Cana and Buenos Aires in June.”