The British Airways chief executive has warned that he sees “no visible signs of improvement” in the overall airline industry, as the airline reported its first second-quarter loss since it was privatised more than 20 years ago.

For the three-month period ended 30 June, the carrier saw a loss of £148 million, as compared with profits of £37 million for the same quarter last year.

According to the report, the airline’s costs were down by 6.6 per cent for the quarter, but said that there was still “much more to be done.”

BA still has not come to an agreement with the unions representing baggage handlers, check-in staff and cabin crew over the thousands of job cuts planned or the pay freezes that are to be introduced as part of an overall cost-cutting programme.

Willie Walsh, the airline’s CEO, noted that he believed the talks would result in an agreement. They are currently in a “cooling-off” period that is due to end later this week.

British Airways cut 4,000 jobs in the last year and has said that 7,000 other employees have taken voluntary unpaid leave or agreed to pay freezes.

It confirmed that more planes will be grounded and that more services will be cut back as well.

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