British Airways has reported pre-tax losses of £531 million for the 12 months to March.
The airline blames a £1 billion fall in revenue to £7,994 million, but said losses were partially offset by cost cuts including a £597 million cut in fuel costs and a £390 million reduction in other operating costs.
The results also reflect the impact of strike action, with 15 more days of strikes by cabin crew due to begin on Monday.
The loss is the largest since BA was privatised, and comes on the back of a £401 million pre-tax loss last year.
Chief executive Willie Walsh said: “Despite a £1 billion drop in revenue during the year, our determined efforts on cost control mean that costs have reduced at a comparable level and our operating loss is virtually the same as in the previous year.
“To be in the midst of the biggest economic downturn in 60 years and produce the same operating figure as last year shows the hard work that has been put into steering our business through the recession.”
He added: “Total costs are down by almost £1 billion, comprising a £597 million reduction in fuel costs and a £390 million reduction in non-fuel costs.
“The cut in non-fuel costs has been achieved by the introduction of permanent structural change in the way that we work allied with capacity reductions and cuts in external spend.”