British Airways could start charging for extras such as wine and peanuts as it desperately grapples to cut costs.

The airline’s chief executive, Willie Walsh, said he was considering following arch rivals such as Ryanair that charge for such items.
But he told the staff newsletter BA News: “We cannot risk permanent damage by making shorter-term changes to our product that may generate limited revenues and increased negativity over the long-term.” But warned: “There will be changes.”

Mr Walsh said BA, which suffered a £401m pre-tax loss last year, is fighting for survival. He has given unions a June 30 deadline to agree to pay cuts.

Despite its woes, BA confirmed it would press ahead with the launch of a twice-daily service from London City Airport to New York JFK on September 29.
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