Ouch
British Airways has reported a pre-tax loss of £148m ($245m) in the three months to the end of June. This compares with a profit of £37m in the same period last year. Its operating loss of £94m compares with a profit of £35m last year.
Its losses come in the middle of a tough year for airlines as passengers cut back spending in the recession.
"Trading conditions continue to be very challenging," Willie Walsh, the airline's chief executive said.
"While traffic volumes are down considerably compared to last year, they have stabilised during the quarter and show some signs of improvement for the peak summer months," he added.
Revenues fell 12.2% to £1.983bn in the quarter.
We're cutting forecast capital expenditure by 20% this year from £725m to £580m, and it's likely to remain at the same level this year 
Willie Walsh, BA chief executive
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Passenger revenue fell 12.5% while the worldwide decline for airfreight has also hit its cargo business, where revenues were down 28.1%.
Staff cuts
BA has faced possible industrial action over its efforts to cut costs and staffing numbers. The chief executive has previously said that its drive to save cash was part of a "fight for survival". In June, he asked thousands of staff to work for free for up to one month to keep the airline in business.
The airline had cut staff by 1,450 since the end of March through "reduced overtime, increased part time working and targeted voluntary redundancy", he said.
A "permanent structural change" to its employee cost base was "essential to our short-term survival and long term viability", Mr Walsh said.
The airline should meet its cost-cutting targets, he added.
"Our engineers and pilots have voted for permanent change. This is a great step forward. Talks with other union groups continue. We're cutting forecast capital expenditure by 20% this year from £725m to £580m, and it's likely to remain at the same level this year," he added.