British Airways posted a record 531 million pounds ($762 million) full-year loss, hit by strikes and winter snow, though said it had managed to cut costs by around 1 billion pounds due to restructuring efforts.
The loss, the airline's largest annual deficit since it was privatized in 1987, follows last year's 401 million loss. BA said its revenues for the year to the end of March fell 11 percent to 7.9 billion pounds but that its costs had come down by around the same amount.
This is our second consecutive year of record losses but we take heart from the fact that, while our revenue has fallen by 1 billion pounds , so have our costs, BA said in a statement, adding that the outlook is becoming slightly more positive.
BA had been expected to report an average pretax loss of 590 million pounds, according to a Thomson Reuters I/B/E/S poll of 17 analysts.
The results were severely affected by cabin crew strikes in March, which BA said cost it around 45 million pounds and are expected to continue next week.
BA also said its merger with Spain's Iberia , which is expected to generate 400 million euros ($496.6 million) a year in cost savings, would be complete by the end of 2010.
Shares in BA, which have dropped 17 percent in the last month, closed at 186.6 pence on Thursday, valuing the business at around 2.2 billion pounds.
(Reporting by Rhys Jones; Editing by Victoria Bryan)