LONDON (AP) — Shares in British Airways PLC slid over seven percent yesterday after the company warned that it would likely post an operating loss of £150 million ($207 million) for its full fiscal year ending in March amid tough trading conditions and the fall in the British pound.

"Further economic weakness in January and the outlook for February and March combined with the fall in sterling, are impacting our outlook for the year ended 31 March, 2009," the company said in a statement to the London Stock Exchange.

It said results for its fiscal the third quarter through the end of December 2008 are expected to show an operating loss of around £50 million, with profits negatively hit by £56 million as a result of translating foreign currency obligations back into pounds.

And despite the continuing fall in oil prices, the company said lower fuel costs were offset by lower fuel hedging benefits, largely because of the fall in the pound.

Non-fuel costs, it said, are expected to rise eight percent, compared with the earlier five percent prediction.

The pound has fallen against all its major competitors in recent weeks. Last week, it touched a near 24-year low against the dollar of around $1.35, while the euro is in striking distance of hitting parity with the pound.

Following the news, British Airways stock fell 7.3 percent to 135.50 pence.