BA has set aside £350m to cover fines and civil claims after it admitted breaching competition laws.
The UK airline said this was its "best estimate" of claims likely to be levied on it after staff discussed changes in fuel surcharges with rival carriers.
Willie Walsh, BA's ceo, said the breach of the law was "clear and comprehensive" and "deeply regrettable and completely unacceptable."
Staff allegedly involved have since left the carrier.
At the same time, BA announced pre-tax profits of £611m for the year ending March 2007, compared with £616m for the same period to March 2006.
Operating profit fell from £694m to £602m, despite the fuel costs rising by £350m.
The carrier said its revenue rose by 3.4% during the year to £8,492m compared to £8,213m in 2006.
During the year BA's operations were disrupted by the terrorist chaos at Heathrow in August and fog in London in December.
Mr Walsh said: "These are strong results despite a challenging year. We know at times it has been a frustrating year for our customers, caused by disruption and overly restrictive UK government security measures on hand baggage.
"We have taken steps to ensure the fundamentals of our business are strong, laying the foundations to deliver our 10% operating margin target by March 2008.
"We have addressed the £2.1bn pension deficit and disposed of the loss-making regional business, BA Connect.
"Our total cost control has been good, with non-fuel costs up just 1.1%."
Martin Broughton, BA chairman, said: "We are pleased with the progress that Willie and his team have made on many fronts this year despite all the challenges.
"In terms of current performance, we have seen some weakness in non-premium segments notably on the North Atlantic.
"To some degree, complete visibility is hampered by the ongoing baggage restrictions which impact all cabins but particularly premium.
"Our revenue guidance of 5-6% increase is unchanged but we now expect to be at the lower of end of this range."