BA blames strikes and ash cloud for £164m loss

BRITISH AIRWAYS said that cabin crew strikes and Iceland's volcanic ash cloud had sent the beleaguered airline £164m into the red for the three months to June 30.

The combination of the bitter industrial dispute with the Unite union and the closure of most of European airspace for almost a week in April cost the airline around 250m over the quarter.

Cabin crew have taken 22 days of strike action since March and further walkouts could take place from September as the unrest lingers on.

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But chief executive Willie Walsh said the airline had seen an improved operating performance despite the disruptions and BA still expects to break even this year after two years of losses.

Mr Walsh played down fears of a "double-dip" recession, saying the airline was seeing a "steady recovery" and positive underlying trends in both cargo and passenger traffic.

At the operating level, losses of 72m were less than half the 148m posted a year earlier, the chief executive added.