"Thanks to everyone who works at Go, it is now a leading European brand," said Rod Eddington, British Airways' chief executive.
"It has made a profit every month this year. However, given the strategic goals we have set for the group as a whole, now is the time for British Airways to gain the benefits of its investment and realize the considerable value created in Go."
Go is based at Stansted airport, northeast of London, a major base for low-fare carriers operating in Britain.
The sale was announced as British Airways reported pretax profits of 200 million pounds in the second quarter, compared to 40 million pounds in the same period a year ago.
"We are taking a ruthless approach towards poorly performing routes and assets," said Eddington. "Those not adding value are being removed. It is imperative that each of our aircraft generates shareholder value."
The airline said it iplans to cut capacity worldwide by 10 percent in next summer's schedule.
"We have a number of different businesses operating separately within Europe. We are currently examining how we can better rationalize and integrate their activities to deliver better value for the group overall," Eddington said.
(AP)