British Airways incurred huge pre-tax loss in the first quarter due to ongoing cabin crew strike and disruption caused by volcanic ash clouds.

It posted loss of £164 million in the three months ending on June 30 as compared to loss of £531m in previous year, mainly due to cabin crew strikes and the volcanic eruption in Iceland which cost the airline around £250 million.

The revenues declined by 2.3 percent to £1.94bn, but on the other side cost also fell by 3.3 percent.

Head of BA, Willie Walsh is expecting that the airline will generate profit for the full year due to significant global economic recovery that resulted growth in passenger number and 36.7 percent increase in cargo volumes.

He added, "The underlying figures are positive and the market has been pleasantly surprised by both revenue and cost performances."

BA, presently, is under the deficit of £3.7billion.

The average revenue generated for each kilometer traveled by its paying passengers, known as yield, has increased by 13.5 percent in the first quarter to 6.88p due to growing number of business class customers.