British Airways cuts IT spend by £23m

British Airways has cut IT expenditure by £23m as part of a £400m cost-saving exercise.

British Airways has cut IT expenditure by £23m as part of a £400m cost-saving exercise.

The reduction represents BA's single biggest saving amid a £79m cut in supplier costs.

A six-monthly interim management report showed a loss of £292m, representing a 13.7% drop in revenues.

Despite the losses, the airline's share price jumped 5.6%, as the City felt losses were being brought under control.

British Airways CEO Willie Walsh said, "With revenue likely to be £1bn lower this year, we can't stand still, and further cost reduction is essential."

Walsh acknowledged that manpower had already been cut by 1,900 staff but he expected a further reduction of 3,000 positions by 2010.

Staffing is BA's second biggest cost after fuel and represents about a quarter of all expenditure.

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