BA sees more job cuts if Iraq war erupts - report

British Airways has carried out an urgent review of its contingency planning procedures in the face of the growing threat of a war in Iraq, which it fears could trigger the need for more cuts in capacity and jobs, the Financial Times has reported.

"We are focused on a Middle East conflict. We have just gone through all our contingency planning. We have taken all the measures necessary so far, and we can cut capacity quickly again like after Sept 11," Eddington said.

He said that if a conflict over Iraq had the same scale as the Gulf war, it would have a "substantial impact" on the industry.

The airline is in the middle of a drastic cost-cutting exercise in which it is axing 13,000 jobs, or 23% of its mainline workforce between August last year and March 2004.

The chief executive assured that the airline was in a stronger position now than before Sept 11 to withstand further shocks because of the actions taken to reduce its cost base.