Pilots at British Airways could take an unprecedented voluntary pay cut following talks this week on a number of cost-saving measures, the Sunday Times reported, citing industry sources.

The range of measures, which include a small across-the-board pay cut, will be discussed with the BA section of BALPA, the UK pilots' union, the paper said.

"Discussions with BALPA continue," said a spokesman for the airline. "We would not discuss the details of these discussions while they are continuing."

BA, Europe's third-biggest airline by revenue, is facing a fight for survival, CEO Willie Walsh said on June 2.

The airline posted a record annual loss last month and scrapped its dividend. There has also been speculation that BA may close its final pension scheme.

A full actuarial valuation of the retirement scheme is under way with results expected to be presented to the funds' trustees later in the year.

"We expect then to discuss with the trustees how the schemes should be funded in the light of the valuation findings. We will explore all options as part of a funding review," said the BA spokesman.

Analysts and shareholders have been concerned about the group's pension deficit, which was valued at GBP1.5 billion pounds (USD$2.4 billion) last March, but is likely to have grown substantially since then.