British Airways has announced an additional 5,800 jobs losses, on top of 7,200 job cuts it had previously signalled.
The job losses are aimed at helping to make £650 million sterling annual savings - the airline is losing £2 million sterling a day, BA said.
The airline is also restructuring its European short haul business to compete with the no-frills carriers.
Business travellers and holidaymakers will be offered lower fares, greater flexibility and more choice from June.
Lowest fares will be available on the Internet as BA reduces payments to UK travel agents for short haul bookings.
The fresh job losses amount to a manpower reduction of 13,000, or 23 per cent of the airline's workforce of 56,700 from last August.
BA said the cuts were necessary to transform the business into "a simpler, leaner, more focused airline" so it could survive in an increasingly competitive market."
It said the overhaul of the business will achieve a 10 per cent operating margin and save £650 million sterling a year by March 2004, with £450 million sterling of this secured by the end of the first year (2002 - 2003).
There will be a one-off cost of £200 million sterling and the charge will taken over the next two years.
PA