BA remains optimistic about its financial future, however, and chief executive Willie Walsh said the airline will continue to target a break even position for the full year.
Walsh said: "Despite both revenues and cost being hit by the closure of UK airspace following the Icelandic volcanic eruption and the impact of industrial action, our financial performance improved during the quarter from underlying revenue increases and further cost reductions."
Walsh added: "Our focus must remain on cost control as we grow and continue our quest for permanent structural change across the business."
BA has received the green light for a merger with airline Iberia and signed a deal in April to create one of the world's biggest airlines.
But uncertainty over possible strike action continues as, earlier this month, Unite union members rejected BA’s final pay offer and could strike again in September.
So far this year, cabin crew have gone on strike for 22 days, with 15 of those days in the three months to the end of June.
Further talks are due to be held at the mediation service Acas on Monday.