LAST-DITCH talks aimed at averting a strike by thousands of British Airways cabin crew have resumed, with a fresh warning that the walkout will cost the economy millions of pounds.

BA management and union officials met for a third consecutive day to try to break the deadlock in a bitter dispute over sickness absence, pay and staffing.

Chief executive Willie Walsh and other senior managers spent all weekend negotiating with officials from the Transport and General Workers Union, including its general secretary, Tony Woodley.