BA has posted disappointing quarter results as tough market conditions continue.

In its interim management statement for the three months to June 2009, British Airways (BA) has reported a pre-tax loss of £148 million.

The airline also reported an operating loss of £94m – a huge drop from the £35m profit the company made in the same period last year.

Revenue fell 12.2% to £1.983 billion in the quarter.

The announcement was made after several difficult months for BA and the airline industry as a whole. The volume of traffic across the board has significantly reduced.

The report also states that operating costs and underlying non-fuel costs have fallen but neither have had a  pronounced positive impact on the company’s profits.

Willie Walsh, British Airways’ Chief Executive, said: “Trading conditions continue to be very challenging with underlying revenue down 16.8% and no visible signs of improvement.”

Passenger revenue fell by 12.5% and revenue from the cargo business fell by 28.1%.

BA stated that its business plan has been revised in order to tackle the main issues facing the airline. The company stated that “during winter 2010, a total of 22 aircraft will be parked”.

Another measure undertaken by the ailing airline has been a reduction in staff numbers. BA is continuing to work towards “a permanent structural change to our employee cost base” in a bid for future viability.

Mr Walsh said: “Manpower has reduced by 1,450 since March 31 2009, through reduced overtime, increased part time working and targeted voluntary redundancy.”

The outlook for BA remains uncertain as trading conditions for this industry will continue to be difficult during the ongoing global recession.