BA reveals losses of £45m

British Airways has revealed first quarter pre-tax losses of £45 million.

The airline also said the cost of industrial action over its proposed swipe card clocking-on system will be in the range of £30 million to £40 million.

BA said the deterioration in profits reflected the fall in passenger numbers due to the war in Iraq, the outbreak of Sars and ongoing weakness in the global economy.

This was partially offset by cost savings from the airline's Future Size and Shape recovery programme.

Chief executive Rod Eddington said the uncertainty caused by the strike which crippled passenger services at Heathrow Airport had also impacted forward bookings and would reduce revenue.

Union leaders said the strike losses were down to the company, because of the way it tried to impose the swipe cards, but they pledged to try to rebuild confidence in the airline and among its customers.

Paul Talbot, assistant general secretary of Amicus, said: "Since the 9-11 attack in New York the workforce has been engaged on a day-to-day basis in trying to turn the company around, and this will continue."

Sir Bill Morris, general secretary of the Transport and General Workers' Union, said it was important now that all sides tried to rebuild confidence in BA.

Sir Bill said both sides in the dispute had learned lessons from the row but he added it was now important to move on and help secure the airline's success.

Mr Eddington described the challenge facing BA as "the most testing period in aviation history".

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