But does this turnaround reflect meaningful change within the business? With passenger numbers down, is the recovery sustainable?

So does this mean the aviation downturn following the September 11 attacks is over?

September 11 is no longer really the issue.

Falling passenger numbers, which stemmed from the attacks have by and large been overcome.

BA has reduced plane capacity, and cut fuel costs and staff numbers to reflect the leaner market conditions.

The question now is whether BA can compete with the budget airlines, such as Easyjet and Ryanair, which have thrived despite the sector downturn.

So can it compete?

Price has been the big issue in the rise of the likes of Ryanair - which, incidentally, on Monday reported record profits.

With BA focusing on its breadth of service, and passenger extras, rather than fares, budget airlines were able to steal market share simply by under-cutting.

BA is now wise to the budget operators, and the UK flag carrier still has its reputation as a premium operator to exploit.

The trick is to get the service-pricing mix right, so that BA can play to its own strengths.

What might this involve?

There are various areas in which the budget airlines are weak.

Take airport destinations, for example.

For many urban centres, such as Stockholm, budget airlines fly to secondary airports well outside the city.

So BA can play on its ability to fly passengers to airports within easier range of the city - and, as BA's adverts say, fly people to the city centre not the countryside.

Budget carriers have also been attacked over the quality of services in ancillary areas, such as finding lost luggage.

BA claims it is committed to a high level of service across the board.

The carrier can also play to its strength on longhaul routes.

While this market may have been depressed in recent months, historically transatlantic routes have been highly profitable.

The verdict on Tuesday's figures?

Tuesday's results do not signal the end of BA's problems, but do signal that the carrier is on the long journey back to profitability.