AIR services group Alpha Airports, which has operations at Newcastle and Teesside airports, has cut 923 jobs in response to the post-September 11 travel slump.

The job cuts represent about 15 per cent of its staff.

Most have been in its UK flight services business, which provides food for a number of airlines including British Airways, Britannia and Go. Some cuts have been made in its Australian operations.

Alpha said making the cuts had been a difficult decision, but it had no alternative.

It said its catering business had been hit by a reduction in BA flights, and the move of many of BA's long-haul flights from Gatwick to Heathrow.

The Australian business was hit by the bankruptcy of Australian airline Ansett.

Alpha also has a retail business, which operates shops in regional airports, and said certain of its contracts had become loss-making following changes in airline schedules and passenger mix.

The company expects costs and write-offs to amount to £23m in this financial year. However, it said underlying trading in the year to January 31 continued to be in line with its expectations.

It said: "We are encouraged that the trading outlook continues to become clearer as our airline and airport customers redefine their businesses in line with the available opportunities.

"Alpha has reshaped its business, and we are cautiously optimistic that we can continue to progress from a relatively strong underlying trading base."