Compared with the same period in 2009, however, the carrier saw operating losses fall by 23.4 per cent to £72m as it placed the total cost of disruption for the three-month period at £250m.

BA also revealed that the UK Pensions Regulator had approved its recovery plan to cut its pension fund shortfall, which is seen as crucial to the success of a proposed merger with Spain-based Iberia.

Chief executive Willie Walsh said: "Despite both revenues and cost being hit by the closure of UK airspace following the Icelandic volcanic eruption and the impact of industrial action, our financial performance improved during the quarter from underlying revenue increases and further cost reductions.

"Our cost performance continues to follow last year's trend with total costs for the quarter down 3.3 per cent. Our focus must remain on cost control as we grow and continue our quest for permanent structural change across the business."

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