BA records £160m losses

British Airways has posted third quarter pre-tax losses of £160m (€263m) - not as bad as the market was expecting.

In the same period a year earlier, it made a pre-tax profit of £65m (€107m).

The third quarter figures take BA's losses for the first nine months of its financial year to £115m (€189m).

It was in profit to the tune of £215m (€353m) at the same stage a year earlier.

Operating loss for the quarter was £187m (€307m) compared with an £80m (€131m) profit last time.

For the nine months, operating loss was £65 million. The company enjoyed a profit of £441m (€724m) 12 months earlier.

Chief executive Rod Eddington says: "These results reflect the massive impact on revenue of September 11 and the ongoing economic slowdown.

"We have made real progress in managing our costs, but British Airways still faces a number of other considerable challenges, some of which were apparent before the terrorist attacks on the USA."

Mr Eddington says: "These are being addressed as part of our Future Size and Shape review, which will outline the steps necessary to deliver an acceptable rate of return in the market environment of the future."

Chairman Lord Marshall says: "The general economic weakness in many of our key markets is expected to continue. However, the initial uncertainty and concern caused by the events of September 11 have diminished and, as a consequence, there is an improving revenue trend."