"We are keen to get the fuel manufacturers engaged on discussion about biofuels," BA's head of environmental affairs Andrew Sentance told reporters.

"That is a little way away in terms of research and development but certainly something we should have on our agenda."

While there were no radical breakthroughs to replace jet fuel on the horizon, airlines were starting to look at alternatives for other power sources on board planes, he said.

BA and other airlines are under increasing pressure to reduce carbon dioxide emissions on environmental grounds as well as to slash fuel costs as oil prices soar.

The European Parliament is scheduled to vote next week on a report recommending airlines be included in an emissions trading scheme to help curb pollution and tackle climate change.

The EU government and major airlines including BA have backed the inclusion of aircraft in the scheme as an alternative to other taxes.

However, Sentance said that BA wants the scheme to apply to flights within the European Union only to avoid disputes with carriers from other parts of the world who would object. BA makes most of its profits from long-haul operations, particularly transatlantic flights.

Sentance said forecasts that inclusion in the emissions trading scheme would add 1 to 2 euros to the cost of a short-haul flight were realistic, although BA declined to give its own forecasts.

The current system, launched last year, puts a limit on the amount of carbon dioxide (CO2), the main gas blamed for global warming, that big polluters like power plants can emit.

Companies buy more rights to pollute if they overshoot their target or sell them if they come in below the cap.