Something is wrong with the numbers.
BA aren't the only domestic airline, in fact, they're a small player. Ryanair and Easyjet fly loads of domestic routes, and are far more useful if you're travelling within the UK.
BA planes are nearly always have more passengers than Ryanair and Easyjet on the domestic routes I've travelled.
If domestic wasn't worth doing, Ryanair and Easyjet, Flybe, etc, woudn't bother doing them. Ryanair don't keep things that don't make them money.
I doubt domestic routes cost anywhere near that much to operate. If that's what it is costing BA, then BA need to send the little elf for a weeks work-experience with the fat greek.