BA hit by loss of £531m as strikes loom

The airline – facing more strikes on Monday in a bitter dispute with trade union Unite – has been hit by recession, the volcanic ash cloud and a first wave of industrial action in March.

Today's slide into the red is slightly less than the 600m feared, but brings BA's total losses for the past two years to 932m after a 401m reverse the previous year.

The company said revenues plunged by 1 billion, although this was offset by falling fuel costs as well as savings elsewhere in the business.

Chief executive Willie Walsh also fired a broadside at unions after Unite yesterday won its appeal against their latest strikes being ruled out on a technicality.

He warned: "Returning the business to profitability requires permanent change across the company and it's disappointing that our cabin crew union fails to recognise that."

He added that the current financial year "could hardly have had a worse start".

Following yesterday's court decision, the 15 days of strikes due to on Monday could cost BA 100m.