BOSSES of British Airways have given up their annual bonuses despite a 70 per cent rise in the company's annual profits.

The company's annual report shows that chief executive Rod Eddington voluntarily waived a bonus of about £175,000 - a third of his £558,000 salary.

Operations director Mike Street and finance director John Rishton also agreed to waive bonuses of about £100,000 each. Mr Street receives a basic salary of £325,000, while Mr Rishton receives £305,000.

The company last month posted higher than expected pre-tax profits of £230m in the year to March and said it had made strong progress in its drive to cut costs.

BA achieved annual savings last year of £869m against a target of £650m, chiefly through the loss of 13,082 jobs, and is targeting a further £300m of savings between this year and 2006.

A BA spokesman said: "Given that we are trying to cut our employee costs by £300m in the next two years, and that we are seeking cost efficiencies throughout the business, our three executive directors felt it would be inappropriate to take their bonuses."