BA blames fuel bills for slump

BA has blamed the "worst trading environment the industry has ever faced", with soaring fuel prices and reduced consumer spending, for a massive fall in profits. The airline's chief executive, Willie Walsh, said: "The combination of unprecedented oil prices, economic slowdown and weaker consumer confidence has led to substantially lower first quarter profits."

Pre-tax profits for the three months to the end of June this year were £37m, compared with £298m for the same period in 2007, a fall of 88 per cent. The airline, considering a merger with Spain's Iberia, said it was to cut three per cent of its flights to save money.

But the carrier insisted it was "well prepared", and would be controlling its costs carefully.