British Airways posted an 88 per cent fall in first quarter pretax profit today due to spiralling oil prices, the economic slowdown and weaker consumer confidence.
Profit before tax for the three months to end-June fell to £37 million from £298 million in the first quarter last year, missing an average forecast of £49 million supplied by BA.
Analysts' forecasts for pretax profit ranged from £16 million to 87 million. The group's operating profit fell to £35 million from £255 million during the same period last year.
The British flag carrier said talks with Spanish carrier Iberia about a potential all-share merger are underway.