British Airways has announced the biggest loss since the company was privatised in 1987.
BA reported a loss before tax of £401m for the year to 31 March, after seeing its results hit by a weak pound and higher fuel costs.
BA made a revised profit of £922m in the previous year.
Although revenues increased to almost £9bn, BA faced a near-£3bn fuel bill. Chief executive Willie Walsh said he saw "no signs of recovery anywhere".
Fuel costs rose 44.5% after the price of oil soared last year. The weaker pound also contributed to rising costs as fuel is bought in US dollars.
The results included redundancy-related costs of £78m.
BA said it had cut more than 2,500 jobs since last summer and added that it was in talks with unions about "pay and productivity changes".
"The prolonged nature of the global downturn makes this the harshest trading environment we have ever faced and, with no immediate improvement visible, market conditions remain challenging," Mr Walsh said.
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