OAG Travel News

Decline continues in April

British Airways has reported a sharp decline in premium traffic over April as demand from the corporate travel market continues to drop.

The airline's 17.7% decrease in demand for business and first class seats deepens the 13% decline seen in March.

"Market conditions remain very challenging, with volume under pressure in premium and yield under pressure in all cabins.  Yield weakness is driven by both price and fare mix," BA said.

Airlines have come under pressure as businesses cutback in the midst of a global recession.

But BA last week said it would offer 5,000 flights worth £15m to help small and medium sized (SMEs) UK companies.

The move could help both UK SMEs and BA by attracting corporate customers.

BA's overall passenger capacity fell 2.4% in April, while traffic rose 0.9% resulting in a load factor increase of 2.6%.

The figures show a slow in the decline of overall traffic for BA, which fell 7.3% in March.

BA said April's non-premium figures were boosted 5.2% by Easter, which fell in March last year, while premium volume suffered.

In April, BA sold 11 mainline B757 aircraft to be used for cargo over the next two years.

Source: www.abtn.co.uk report by Andrew Gough