Austria's flag ship carrier Austrian Airlines AG (AUA.VI) Thursday said that around 1,000 jobs will be cut by mid 2010, as the carrier plans to improve earnings by EUR200 million by 2012.

The company said that measures will also include layoffs.

"Reaching these goals is made more difficult by the economic crisis .... but that also shows that a restructuring of the company is imperative," said Austrian Airlines board members Andreas Bierwirth and Peter Malanik.

Company Web site: www.austrian.com

-By Frankfurt Bureau, Dow Jones Newswires; +49 69 29725 500; djnews.frankfurt@dowjones.com