British Airways has reported a significant fall in first-quarter pre-tax profits.
The airline is blaming the ‘worst trading environment’ the aviation industry had ever faced for the slump.
BA also announced it is cutting capacity on its winter schedule by 3% as its fuel costs soared 49%.
The airline’s pre-tax profit for the three months to the end of June was £37m, compared with £298m for the same period last year.
‘We are in the worst trading environment the industry has ever faced,’ said chief executive Willie Walsh, citing unprecedented oil prices, an economic slowdown and weaker consumer confidence.
He said a program of hedging had mitigated the impact of higher oil prices, but nevertheless fuel costs at £706m were up £233m in the quarter.
‘We expect our fuel bill to top £3bn this year - the equivalent of more than £8m every day,’ said Mr Walsh.
