British Airways today warned of potentially big losses this year because of soaring oil prices as the airline's management came under heavy attack from shareholders at their annual meeting in London.

Chairman Martin Broughton staved off attacks over corruption, racism and poor performance but said there would need to be significant changes at the carrier if it is to break even.

"With oil at 85 dollars a barrel - a price not seen since February - we would still be on course for a pretty impressive profit," said Broughton.

"But the nearer the oil price moves to $125, the nearer we would come to the red. And with the oil price stabilising around where it has been for the past few weeks, the implications are obvious.

"At the start of this decade fuel represented less than 10% of our total costs. This year we expect it to represent more than 35%. So if we do nothing we'll be heading for a loss.

"It will be a considerable achievement for British Airways to break even this year."

However, Broughton came under attack from shareholders over a number of issues. Long-standing private shareholder John Farmer harangued Broughton and his chief executive Willie Walsh for the Terminal 5 fiasco.

Farmer also attacked BA executives for the "corrupt" fare-fixing scandal in which the airline was fined £270 million and he slammed the airline's " notoriety" for delays and its poor record for losing luggage.

Farmer said: "Fit for five? The board is barely fit for anything. As for the complacency of the chairman, I think you should go and you should consider changing your chief executive."

Also at the meeting one BA captain attacked the airline for anti-Scottish racism in some of its staff. The pilot said: "We need vigorous management action to address this issue."