BA braced for first quarter losses

British Airways are braced for losses in the first quarter

British Airways has warned it will report a loss for its first quarter - a record for the company which usually kicks off its financial year on a high as it coincides with the run up to the holiday season.

BA said it expected to announce operating losses of about £100 million when it posts first quarter results on Friday.

It will be the first time since the firm was privatised in 1987 that it has recorded a deficit at the beginning of the year.

A spokesman for BA said the first three months of the year is generally seen as the second strongest period - with the summer months taking pride of place in the airline's financial calendar.

The stock market will be keen to see if broadcasting giant BSkyB kept up the pace of growth in the fourth quarter when it reports full-year figures on Thursday.

BSkyB reported far better-than-expected net additions of high definition customers in the three months to March 31 - at 234,000 - which helped overall net additions rise 43% year-on-year to 80,000.

The group slashed the cost of HD box from £150 to £49, which sent demand soaring.

Engines giant Rolls-Royce is on Thursday expected to report a marginal improvement on last year's results for the first half of the year. Analysts predict a pre-tax profit of £411 million for the period, up £1 million from the figure in 2008.

Airlines are still in difficulty and possible cuts in production could have a knock-on effect on the engineering and aerospace giant.

However, the company had a decent showing at the Paris Air Show this year, which has contributed to it outperforming its peers in the civil aviation industry.