BA blames loss on weak economy and fall in sterling.

British Airways announced today (6 February) that it had made a loss of £70 million in the nine months to 31 December 2008.

The fall in sterling and the weak economic situation are receiving the blame for the airline’s massive drop in profits. The same period last year saw BA make a £816m profit before tax.

Commenting on the results, Willie Walsh, Chief Executive of BA, said that measures had been taken to offset the current economic conditions: “We have increased our sales activity in markets with stronger foreign currencies to benefit from exchange and continue to offer competitive fares in both premium and non-premium cabins.

“We continue to review every aspect of the business to control costs while at the same time improving the customer experience and operation.”

Along with the weakness of the sterling, the rise in fuel costs has meant that total operating costs increased by 18.1%. Fuel costs for this period tallied up to £2.2 billion – a 48.4% increase from the previous year.

Despite the posted loss, BA announced an increase in total revenue of 6.2% year on year.

BA has warned of more difficult times ahead. The firm expects to make an operating loss of approximately £150m in the 2008/2009 financial year.