A £250 million hit from the ash cloud crisis and cabin crew strikes pushed British Airways into a bigger first quarter loss than 2009, the airline said today.

BA reported a pre-tax loss for the April to June period of £164 million, 11% up from £148 million last year.

Passenger revenue was also down, by 3.4%, but BA said without the disruption caused by the ash cloud and strikes, it would have been up by 11%.

Chief executive Willie Walsh said the airline remained on course to break even over the whole year, despite predictions of a “double dip” recession.

“The steady recovery continues and, on that basis, we continue to target to break even at a profit before tax level for the full year as we move forward on our strategic objectives and continue to build on our excellent customer service,” he said.

The operating loss for the period was £72 million, compared to £94 million last year, and Walsh said underlying trends for revenue and costs were positive. Operating costs were down 3.3%.

Cash reserves were also increasing, as at the end of June BA held £1,749 million, up £35 million from the end of March this year.