UK carrier British Airways says total traffic for the month of July was up one per cent, capacity was down 2.7 per cent from a year ago and passenger load factor was up 3.1 per cent compared to last year. The remaining northern summer holiday months are expected to help all European carriers loads and yields, but BA added that yields will be under pressure from the year-on-year impact of lower fuel surcharges, exchange movements andmix.

BA cargo business has been hit even harder, with significant excess capacity driving lower prices. Cargo revenue collapsed by 28.1 per cent in the first quarter, as freight-tonne-kilometres (FTKs) declined by 11.5 per cent and cargo yields fell 18.8 per cent, driven by lower levels of fuel surcharges as the oil price fell and signifi cant price declines.

BA is parking 22 aircraft this winter, while the delivery schedule for its first six A380 aircraft has been extended by an average of five months with the second six aircraft delayed by an average of two years.