The carrier reported a pre-tax loss of £148m in the second quarter, compared with a profit of £37m in the same period last year.
Revenue also dipped, down 12.2% in the quarter to £1.98bn as customers cut back on travelling during the global recession.
However, Willie Walsh, chief executive of British Airways, says that while passenger numbers are down “considerably” year on year they show “some signs of improvement for the peak summer months.”
The airline has been looking to cut costs this year in the wake of the economic downturn. Earlier this week it emerged it is to stop offering meals to passengers on short-haul flights of up to two-and-a-half hours unless they are travelling before 10am.
The move followed BA’s announcement last month that nearly 7,000 staff had volunteered to work unpaid for up to one month, take unpaid leave or work part-time. News that followed Walsh’s earlier pledge to work a month unpaid