British Airways has posted a 32% increase in its full-year pre-tax loss to £531 million ($766 million).
But the operating loss - which includes restructuring costs of £85 million - is only 5% deeper than the figure of £220 million recorded in the previous financial year.
Revenue declined by £1 billion to just under £8 billion.
But it cut underlying unit costs by 10.8%. Operating costs, excluding fuel, were down by £390 million while fuel costs fell by nearly £600 million.
"Our determined efforts on cost control mean that costs have reduced at a comparable level and our operating loss is virtually the same as in the previous year," says BA chief Willie Walsh.
"The cut in non-fuel costs has been achieved by the introduction of permanent structural change in the way that we work allied with capacity reductions and cuts in external spend."
Referring to the continuing strike threat from cabin crew, Walsh adds: "Returning the business to profitability requires permanent change across the company and it's disappointing that our cabin crew union fails to recognise that."
In the fourth quarter BA halved its operating loss to £145 million.