BA announced plans to cut costs by £450m over the next two years which is expected to lead to a fresh round of job losses.
The two year business plan announced by ceo Willie Walsh is aimed at achieving a 10% operating margin by March 2008.
Ground staff are likely to be among those who lose their jobs in a workforce that has dropped from 65,000 to 47,000 since 2000.
Mr Walsh announced last year the loss of 600 management jobs with staff leaving over the next two years.
The new business plan aims at £225m savings in 2006-7 and the same amount in 2007-8.
But it also includes £200m investment including £40m on a new Club World seat, enhancement of its website ba.com and improvements in its in-flight entertainment facilities.
It also plans to tackle its pension deficit said to be up to £2bn.
The carrier said it was also aiming to set up new procedures to improve punctuality and baggage handling when it moves into Terminal Five at Heathrow in 2008.
BA said it forecast growth of around 4-5% up to March 2007 but also expected its fuel bill to rise by £400m in that period.
It also aims to raise online bookings to 50% by March 2008.
Mr Walsh said: "This plan will make us fit for the future. By resolving our pensions deficit, reducing cost and delivering world-class customer service, we can make a 10 per cent operating margin a sustainable reality."
Amadeus building new hotel IT platform
Amadeus is planning to launch a comprehensive IT platform for hotel reservations in mid-2007, Antoine Medawar, managing director of Amadeus hospitality, said at ITB Berlin last week.
Mr Medawar said the new function, now being built at Amadeus's research centre in Nice, would do the same for hotels as the company's Altea suites did for airlines.
"This will show we are serious about hotels,” Mr Medawar, formerly managing director of IT development company Optims which Amadeus bought in 2004.
"It will be able to handle reservations on all distribution channels and will be linked to all of our IT products,” he said. “We have done a great job with Altea and we are duplicating it here for hotels.”
Amadeus said it had also signed an agreement with German hotel booking agency hotel.de which would add 2000 German and Austrian properties to its GDS.
The bulk of the hotels are small properties in small to medium-sized towns.
Holger Taubmann, General Manager Amadeus Germany, said: "This new partnership represents a big step forward for our hotel strategy in Germany.
"By providing travel agencies with this essential hotel content we help secure a profitable revenue stream for them."