British Airways is to cut 1700 jobs and plans to introduce a two-year pay freeze for cabin crew as it cuts costs in the downturn.
The airline is losing money and expects to make a big loss for the second consecutive year. Global airlines are struggling with a fall in passenger numbers.
BA also announced on Tuesday it will press ahead with plans to recruit new staff on different terms and conditions to current employees.
The airline said the job cuts would involve 1000 cabin crew taking voluntary redundancy and a further 3000 choosing to go part-time. The cuts will take effect from the end of November.
The BBC reports BA earlier asked employees to volunteer to work for free for one month, to take unpaid leave or to work part-time.
It has also scrapped sandwiches on short-haul flights and is introducing charges on pre-booked seats.
In the year to the end of March, BA made a loss of £401 million - its biggest loss since it was privatised in 1987.
Earlier this month, the International Air Transport Association increased its forecast for losses across the whole industry to $US11 billion.
