BRITISH Airways is scaling back its services and accelerating its job reduction programme as the impact of the Iraqi conflict starts to bite.

The airline said it planned to reduce capacity by four per cent in April and May through reduced frequencies and the use of smaller aircraft.

The remaining 3,000 jobs from a 13,000-strong manpower reduction programme will be lost by the end of September rather than March next year, BA added.

Rod Eddington, BA chief executive, said: "There are clearly tough times ahead and experience has shown us that conserving cash is critical at these times.

"We have had the opportunity to plan our response on this occasion and go into this downturn a leaner, fitter company."

The reduced transatlantic service will include the suspension until the end of May of one of the seven Heathrow to New York daily return services.

The changes represent a reduction of capacity on the North Atlantic routes of six per cent.