British Airways has this morning (February 5) reported a £50 million loss for the third quarter of its financial year to December 31.
The figures are better than had been expected, though the airline remains on course to post record losses in April for the second consecutive year.
Aviation sector analysts had feared BA would lose up to £150 million due to the continued slump in premium travel, huge reductions in capacity and the freezing weather conditions suffered in the UK this winter.
But BA chief executive Willie Walsh revealed that more than £10 million of cost had been taken out of the business as the company prepared for a "permanent change" to the landscape of the airline sector.
On a more positive note for the carrier, the figures confirmed BA made its first quarterly operating profit in more than a year, proving a reduction in capacity had fallen into line with demand.
That said, year-on-year passengers figures for the UK and Europe endured an 8.7% fall.
Walsh said: "These results highlight the impact of permanent changes across the company on our costs. Those changes, combined with capacity reductions and external spending cuts, mean operating costs are down by 10.5% and show that we've adapted quickly to the new business realities created by the global recession.
"While we are on the right track, we still expect to make record losses this year. Permanent structural change is being introduced in all areas and will return us to sustained profitability."
The ongoing dispute between BA and cabin crew union Unite shows no sign of ending in agreement.
The result of Unite's second ballot is expected on February 2. The airline has already been preparing for possible strike action in March.
Period highlights:
· Nine month operating loss of £86 million (2008:Operating profit £89 million)
· Nine month loss before tax of £342 million (2008:Loss before tax £70 million)
· Revenue down 12.9 per cent (Revenue before exchange down 18.0 per cent)
· Total operating costs down 10.5 per cent
· Unit costs down 6.7 per cent
· Cash and committed facilities of £4 billion, including £2 billion of committed aircraft facilities
· Q3 operating profit of £25 million (2008:Operating loss £51 million)
· Q3 loss before tax of £50 million (2008:Loss before tax £122 million)