On Monday shares in British Airways PLC slid over 7 percent Monday after the company warned that it would likely post an operating loss of 150 million pounds ($207 million) for its March fiscal year end.
The main factors contributing to this loss are tough trading conditions and the slump of the British pound.
The company in a statement to the London Stock Exchange said, Further economic weakness in January and the outlook for February and March combined with the fall in sterling, are impacting our outlook for the year ended 31 March, 2009.
The third quarter ended December 31 is expected to report an operating loss of approximately 50 million pounds.
Profits have been negatively hit by 56 million pounds as a result of translating foreign currency obligations back into pounds.
And despite the continuing fall in oil prices, the company said lower fuel costs were offset by lower fuel hedging benefits, largely because of the fall in the pound.
Other costs excluding fuel are expected to rise 8 percent as opposed to the earlier predicted amount of 5 percent prediction.
In recent weeks the pound has taken a fall against all its major competitors. The pound was trading at $1.35 last week; near the 24 year low mark against the dollar.
British Airways stock fell 7.3 percent to 135.50 pence following the release of the news.