British Airways says it is edging towards an agreement with cabin crew unions over its cost-cutting proposals.

With the two sides set to resume talks this Thursday after a 14-day cooling-off period, the airline says it is confident of striking a deal that would avert strike action.

The two sides have had an “exchange of communications” during the cooling-off period, a source at the union Unite told The Telegraph.

But the union is also demanding that more senior BA executives become involved in the negotiations.

Willie Walsh, BA’s chief executive, said he was optimistic that a deal would be reached.  He says the cuts are necessary as BA is in “a fight for survival”.

Last week the airline announced plans to scrap seven routes from Gatwick and grounding 22 long-haul Boeing 747s and 757s as it battle with the aviation downturn. The news came as it unveiled its first quarterly loss since privatisation in 1987.

BA has already cut 1,450 jobs since March and said around 7,000 staff have supported its cost-saving plan, including 800 who have agreed to work for nothing for a month.