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BA posts pre-tax loss

BA posts pre-tax loss
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British Airways (BA) made a pre-tax loss of £148 million in the last quarter, the firm has said.

Revenue at the airline also declined in the three months to the end of June, falling 12.2 per cent to £1.983 billion, news that may interest those trading on the stock market.

The firm, which has experienced financial problems in recent months and has been forced to introduce cost-cutting initiatives, made a pre-tax profit of £37 million during the same period in 2008.

It said that it intends to ground a number of its aeroplanes over the next year due to an anticipated further fall in demand.

Passenger revenue over the three months dropped 12.5 per cent, while there was a 28.1 per cent decrease in revenue from its freight operations.

Willie Walsh, chief executive of BA, said that there are "no visible signs of improvement" in the sector, adding that trading conditions "continue to be very challenging".

Shares in the firm climbed 4.32 per cent at 10:00 BST in London following the announcement, rising to 140.10p.ADNFCR-1681-ID-19290927-ADNFCR