BA revises capacity estimates as passenger figures fall

Jul 3, 2009, 16:08 GMT

London - British Airways (BA) Friday announced amendments to flight schedules and a delay in the delivery of its fleet of new Airbus A380 superjumbos as a result of falling passenger figures.

The airline named the current 'challenging economic conditions' as a reason for the move. 'Market conditions continue to be very challenging with trading at levels well below last year,' a statement said.

The announcement came as BA revealed that it carried 2.93 million passengers last month - 4.9 per cent fewer than in June 2008. As a consequence, estimates for capacity up to March, 2010, had been revised downwards.

BA said it had put back by an average of five months the delivery of its first six A380 superjumbos - although the first is still due to arrive within the originally-planned year of 2012.

The schedule for the delivery of the remaining six A380s it had ordered was being put back by an average of two years, with the last aircraft scheduled to arrive in 2016.

BA's June 2009 passenger figures showed that Asia Pacific traffic fell by 16.8 per cent, although Africa and Middle East passenger numbers were up 0.9 per cent.

It said BA planes flew at 79.6 per cent passenger capacity last month compared with 81.4 per cent in June 2008. Premium first class traffic dropped by 14.9 per cent, while economy class numbers were down by 1.3 per cent.

Crucial talks between the airline management and trade unions over cost-saving measures ended without agreement earlier this week, prompting BA to call in the conciliation service Acas for mediation between the two sides.

The airline, which has been suffering from high fuel costs, a weak pound and stiff competition from budget airlines, recorded a pre-tax loss of 401 million pounds (659 million dollars) in 2008, its first since privatization in 1987.