British Airways has lost £148million over the last three months which has led to may staff lay-offs and cut-backs across the board.

The airline has revealed that it plans to drop a further seven routes and will ground 22 of its biggest aircraft to help the airline survive the worst downturn in air travel in over 20 years.

The airline revealed the magnitude of the slump, as it reported its first peak travel season loss, plunging £148million into the red in the last quarter.

Compared with the same time last year, BA still made a profit of £7million in the quarter, as holidaymakers began to tighten their belts.

Conditions remain ‘very challenging’ and there are ‘no signs of improvement’, BA chief Willie Walsh said.

He said that 22 aircraft including Boeing 747s and 757s would be grounded through the winter season which will remove 8,000 seats out of service.

Capacity of the airline is being cut by 3.5 percent this summer and 5 percent in the winter and the airline will cut back seven routes from Gatwick to New York, Alicante, Barcelona, Madrid, Malta and Palma.

Thanks to the Daily Mail.  For more information on this article, visit www.dailymail.co.uk