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.