British Airways yesterday announced another 5,800 job cuts taking total lay-offs over the past five months to almost a quarter of the workforce as it fights to return to profitability.
Europe's biggest airline is hurtling this year towards its biggest ever loss since it was privatised 15 years ago, struggling to cope with a slump in demand for air travel, rising competition from no-frills carriers and a heavy debt burden.
In response, BA said its "future size and shape" review would carve out £650 million sterling (€1.06 billion) in annual savings by March 2004 - the equivalent of 14 per cent of its 2001 operating expenses - for a cost of £200 million over two years.
BA had already cut 7,200 jobs in the wake of the September 11th attacks on US cities - a disaster that shattered demand for transatlantic air travel, BA's most lucrative route.
British Airways is taking "further steps to address its cost base", said chief executive Mr Rod Eddington in a statement.
Investors appeared unconvinced by the announcement which also promises a shake-up of the airline's loss-making European short-haul operations under attack from no-frills carriers.
By late afternoon, the hares were down 2.2 per cent at 199.6 pence sterling having earlier fallen more than 8 per cent in a generally flat London market.
