British Airways Friday reported an 88-per-cent drop in pre-tax profits in the last fiscal quarter to 37 million pounds (73.3 million dollars) as a result of rocketing fuel costs. The figure for the three months up to the end of June compares with 298 million pounds for the same period in 2007. British Airways has blamed a doubling of fuel costs for a sharp profits fall, saying the airline industry faced the "worst trading environment ever." Fuel costs were 8 million pounds a day and were expected to reach 3 billion pounds in the year to the end of March 2009, said the airline. BA, which earlier this week announced plans to merge with Spanish carrier Iberia, also said it would cut winter flights by 3 per cent to cut costs.
