Premium traffic down 9.2% in October
British Airways' half year pre-tax profits slumped by 91.6% from £616m in 2007 to £52m this year.
The UK flagship also reported that premium traffic - its most profitable sector - fell by 9.2% in October.
Willie Walsh, BA's ceo, described trading conditions as "incredibly difficult" adding the six months period was "one of the bleakest on record."
But the airline said it expected to deliver a small operating profit for the year.
The airline said that in the six months from April to September its operating profit fell from £567m in 2007 to £140m this year.
One positive result was that revenue rose by 6.4% from £4,470m in 2007 to £4,754m this year.
Mr Walsh said: "This is a good performance given the incredibly difficult trading conditions. The six month period will be remembered as one of the bleakest on record.
"The period was hit by a crisis in the banking sector, record fuel prices and several airlines going out of business.
"Against this very tough economic backdrop we have delivered profits of £140m resulting from a 6.4% revenue increase.
"Costs are up £711m and remain a key challenge. Fuel costs for the period were up £511m at £1,494m. Our annual fuel bill is still expected to be up some 50 per cent at about £3bn.
"Employee costs, including a £40m severance provision, were up 8.6%."
BA said it was reviewing its capacity across the network and planned to cut 1% from its 2009 summer schedule.
Four services, from Heathrow to Dhaka and Kolkata and from Gatwick to Dublin and Zurich would be suspended.
It said that traffic volumes had fallen on last year and the load factor was down 3.8 points to 74.6%.
Its monthly traffic figures for October showed a 9.2% drop in premium traffic and a 3.3% fall in non-premium passengers.
BA said it expected trading conditions to remain very difficult but growth in revenue from higher prices and favourable exchange rates would off set the drop in traffic.
It expected revenue to grow by 4% and non-fuel costs by 5%. Its fuel bill for the year would be about £3bn.
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