ABC

British Airways (BA) will cut another 1,200 jobs after reporting a record loss of $500 million for the first half of the year.

Shares in the airline took off on the London Stock Exchange - jumping more than 6 per cent - with the profit announcement taking to 4,900 the number of jobs that will be lost at the company by March 2010.

Revenues over the six months to September were also down 14 per cent.

BA chief executive Willie Walsh called it the most difficult year in the history of aviation.

Unite, the airline industry union, is threatening strikes during the busy Christmas period if BA continues with plans to cut the number of cabin crew on long haul flights.

Earlier in the year, 800 BA workers volunteered to work free of charge for up to a month as part of an airline appeal to cut costs.

Another 4,000 workers took unpaid leave, while 1,400 people volunteered to work part-time.

The 800 workers had the choice to work the unpaid time when they wanted and could stagger days worked unpaid.

The airline's chief executive agreed to work for free in July, forgoing his month's salary of more than $120,000.