British Airways will this week prune its short-haul network in an attempt to stem losses caused by the high price of jet fuel.

The cuts, which are expected to be made public this Friday with the company’s first-quarter results, are likely to hit hardest at Gatwick, London’s second-largest airport, where up to 20% of the airline’s short-haul flights are thought to be at risk.

Senior sources at the airline said there will also be cuts at Heathrow, the airline’s main base, but they will be smaller in scale. The reductions in capacity will take place over the airline’s winter season, which runs from October to April.

BA is following the lead of low-cost airlines Ryanair and Easyjet. Ryanair has grounded planes at Dublin and Stansted for the winter, while Easyjet last week said it would scale down its plans for growth. Airlines in America have gone even further, laying off thousands of staff and parking hundreds of aircraft.

Jet-fuel prices have risen in tandem with oil. Airlines were paying $500 a tonne a year ago, and prices have since risen to $1,300 a tonne.

BA’s quarterly results are likely to lead to analysts downgrading their forecasts for the company’s annual profits. This would hit the share price, which closed last week at 246.25p.

Many analysts expect BA to do little better than break even in this financial year, a dramatic reversal from last year, when it posted profits of £850m and an operating margin of 10%, its best since the early 1990s.

Airlines operating at Heathrow face a conundrum on cutting capacity. They run the risk of losing their rights to take off and land at the airport because it operates under a “use it or lose it” policy. Airlines must operate at least 80% of a scheduled service over a six-month period or have their landing slots taken away.

Industry sources said airlines operating loss-making routes might choose to curtail services at the end of a season, and so stay within the 80% threshold.

BA’s chief executive, Willie Walsh, is likely to be quizzed on the continuing fall-out from the company’s part in a price-fixing scandal.

The airline has admitted that it colluded with rival Virgin Atlantic on setting fuel surcharges. Virgin Atlantic has escaped prosecution because it first reported the collaboration to the authorities.

It was revealed last week that four former employees — Andrew Crawley, head of sales; Martin George, commercial director; Iain Burns, former head of communications; and Alan Burnett, former head of UK and Ireland sales — will soon face criminal charges over the affair.

The Office of Fair Trading declined to comment yesterday.

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