LONDON - UK carrier British Airways is to launch a low-cost airline in Europe by the summer of 2022 to compete with rivals Easyjet and Ryanair, according to a leaked internal memo, CNN reports.

The firm confirmed it was working "on proposals for a short-haul operation at Gatwick", but declined to comment further.

It made a loss of €2.3 billion last year, but expects the short-haul market to quickly recover after the pandemic.