Strikes and ash cloud sends BA into the red

British Airways says cabin crew strikes and Iceland's volcanic ash cloud has sent the beleaguered airline £164 million into the red for the three months to June 30.

The combination of the bitter industrial dispute with the Unite union and the closure of most of European airspace for almost a week in April, cost the airline around £250 million over the quarter.

Cabin crew have taken 22 days of strike action since March and further walkouts could take place from September as the unrest lingers on.

But chief executive Willie Walsh said the airline had seen an improved operating performance despite the disruptions and BA still expects to break even this year after two years of losses.

Unite maintainthat 75 per cent of crew at Heathrow lost staff travel concessions, which proved how many had been on strike amid company claims that fewer employees were joining the action.

The union also warned that future bookings were being affected by the continuing uncertainty and claimed the dispute cost BA many times the amount it originally wanted to save.

Willie Walsh has pledged to run 100 per cent of long-haul services in any future period of industrial action.

The dispute will be one year old in November, making it one of the longest in recent times and certainly within aviation.