The carrier saw losses widened in the year to 31 March from the £401m deficit posted last year, hit by cabin crew strikes, high fuel costs and the global recession.
Revenue in the period slumped by £1bn to £7.9bn, down from the £8.9bn registered in 2008/09.
BA will also be bracing itself for further losses caused by the volcanic ash clouds that grounded flights last month, not accounted for in this trading statement.
It will also fear the consequences of further strike action planned by cabin crew after the Court of Appeal gave the go-ahead for the five-day walkouts yesterday (20 May).
Despite the losses, BA says it is targeting revenue growth of 6% this year and expects to breakeven.
“Market conditions are showing improvement from the depressed levels in 2009/10. Cargo is showing significant signs of improvement. Passenger revenue is recovering, with increased corporate activity”, the company says in a statement.