BA expected to reveal profits slide

British Airways is expected to reveal a slide into the red when it gives half-year figures

British Airways is expected to reveal a slide into the red when it gives half-year figures on Friday in the wake of its first ever April to June loss since privatisation in 1987.

Analyst consensus forecasts point to a pre-tax loss of £252 million for the six months to September on revenues of £4.13 billion.

The figures compare to the firm's pre-tax profits of £52 million in the equivalent period last year, which themselves marked a sharp year-on-year fall amid rising fuel costs.

BA, which is also in the grips of an acrimonious battle with staff over strike action, slumped into the red by £148 million in the first quarter of the year against profits of £37 million a year earlier.

The airline said costs had come down by 6.6% in the first quarter, but warned there was "much more to be done". It has announced plans to cut total staff numbers by 3,700, in addition to a reduction of around 2,500 achieved between June 2008 and March 2009.

Meanwhile, solid trading updates from transport groups Go-Ahead and Arriva have put the pressure on rival FirstGroup ahead of its half-year figures on Wednesday.

Arriva said revenues at its CrossCountry rail franchise improved over the last six weeks, while growth in its bus division remained consistent with the performance seen in the first six months of the year. And Go-Ahead reported revenues growth slightly ahead of expectations in its regulated and deregulated bus operations.

Aberdeen-based FirstGroup - whose rail franchises include First Great Western and First ScotRail - revealed at the end of last month that it has not been so fortunate, with bus and rail revenues weakening further as it battled against the impact of recession.

Like-for-like rail revenues slowed to 1.7% in the six months to September 30, while bus revenues eased to 2.3% in the UK bus division, where the group is burdened with a much higher fuel bill this year.

The half year figures are forecasted to show the impact of untimely fuel price hedges, which will add around £100 million to fuel costs this financial year. Analysts are pencilling in a 38% plunge in interim pre-tax profits, largely due to the higher fuel costs.