The Share Centre lists BA as a sell following losses

This morning, British Airways, Europe's third largest airline, reported a first quarter loss of £148m despite slashing fares for cash-conscious travellers. Nick Raynor, investment adviser at The Share Centre, comments on the results and why investors should be wary of the aviation industry at present.

"Today's significant losses are not good for British Airways. Its net loss of £148m compares with its previous £37m profit for the same time last year. Passenger revenue also plummeted by 12.5 per cent as customers continued to cut back on air travel.

"In a bid to remain competitive, British Airways has been slashing fares and put into place cost cutting measures in a bid to survive the recession. They have delayed plane deliveries, cut back on in-flight catering and are currently considering a wave of redundancies, which could see as many as 4,000 jobs axed. Investors will be hoping that these measures will get British Airways back on track.

"We continue to list British Airways as a sell for low-to-medium risk investors as we believe it will be sometime before the industry recovers. However, investors with an appetite for risk may want to take a flyer and see this as an opportunity to snap up cheap shares; British Airways' shares are down 25 per cent on last year."