British Airways loses £148 million in past three months

British Airways has announced a pre-tax loss of GBP£148 million after holiday makers choose to travel less during the recession.

The economic downturn has seen customers attempt to save money by spending their holidays at home rather than travelling abroad. As such, the airline has seen revenue fall 12.2 percent to GBP£1.98bn in the three months to the end of June.

The airline has not reported a loss in the first quarter since it was privatised more than 20 years ago.

British Airways has said that it "continues to face very difficult trading conditions" but expects a larger number of people to fly during the season's peak holiday months.

Cutbacks from businesses have also affected the airline, with a decline in airfreight hitting British Airway's cargo business, where revenues were down 28.1 percent.

It was announced a few days ago that the airline was attempting to save money by scrapping all meals except breakfast on its short-haul flights in an effort to save GBP£22m. The company is also planning to save money by no loner serving chocolates and canapes to business class passengers.

Staff members have also been asked to take pay cuts or even considering working for nothing. Currently, pilots have accepted a pay cut, but negotiations with cabin crew and ground staff are still continuing. The airline has also cut manpower by 1,450 since March 31 through "reduced overtime, increased part-time working and targeted voluntary redundancy".

British Airways has been able to save money on fuel in the past year due to easing fuel prices. It is expected that the company's fuel bill will be between GBP£450m and GBP£500m lower this year than last year.

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