Christmas flights cut by 7 per cent

11/08/2008

There will be 60m fewer seats on flights headed for exotic climes this Christmas, as more and more partygoers opt to stay in the UK.

The global airline industry is cutting 7% of flights over the Christmas period. High - oil prices and the credit crunch are being cited as reasons for the drop in demand.

The worldwide cuts are being led by US carriers such as Continental and American Airlines. Further reductions are likely to follow in 2009.

BA chief executive Willie Walsh said last week that the airline industry faced its "worst ever" trading environment.

One third of the global capacity cuts are taking place in the US domestic market, but the transatlantic market is going the other way. The Open Skies treaty has reduced the red tape surrounding travel between the US and Europe. As a result, there is a 1% increase in seats on these routes.

Overall, however, it seems that most people will be staying in their home countries for this year's Christmas parties. Even the Asian market, previously one of the brightest performers, is cutting 13% of its flights. The capacity decline is even worse than the reduction that followed the September 11 terror attacks, when the number of seats flown fell by 5%.