FURTHER widescale job cuts look inevitable at British Airways after the airline announced a quarterly loss of £160m.

Finances have been rocked by the impact of the September 11 terrorist attacks, although the company's latest figures were not as bad as feared.

BA is expected to unveil its future size and shape review in a matter of days a move which is thought will bring hundreds more job cuts.

Chief executive Rod Eddington said: "The future size and shape review will take a hard look at the number of people we employ and there will be additional job losses."

The bottom-line loss of £160m, in the three months to December, compared with a pre-tax profit of £65m last time.

Passenger capacity fell by 16.3 per cent as BA was forced to cut services in the wake of September 11.