Fuel costs rose 44.5% after the price of oil soared last year. The weaker pound also contributed to rising costs as fuel is bought in US dollars.
But the airline said it expected lower fuel prices to reduce its fuel costs by about £400m in the year ahead.
The results also included redundancy-related costs of £78m.
BA said it had cut more than 2,500 jobs since last summer and added that it was in talks with unions about "pay and productivity changes".
Despite BA's claims that it has been a victim of a downturn in global conditions, analysts say the airline is not entirely blameless for its poor results.
Tom Symonds, BBC transport correspondent
One of BA's biggest problems is the drop in numbers by 13% of the airline's real earners - the business passengers.
The airline is doing all it can to keep them flying, including in recent months a Buy One Get One Free offer.
It is much harder for BA to take on the likes of easyJet and Ryanair when it comes to offering cheap economy seats. And easyJet in particular is deliberately punting for business passengers forced to travel on a budget.
The other big problem is an old one. BA's fuel bills have soared by 44.5% in the last year.
The real problem is that the world's airlines buy their fuel in dollars, and the exchange rate against the pound is not good for BA.
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