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Airlines adjust as demand slides

"With industry officials and journalists flocking to Paris for this week's biennial airshow, British Airways flight 314 from Heathrow was overbooked.

Some passengers were told there were no seats available, though with compensation on offer, along with seats on later flights, this is a common practice that leaves many travellers happy, according to BA's duty manager.

These days, though, the tactic of turning away customers from flights they have paid for is one the airlines are rarely able to resort to.

Increasingly, as the recession continues to bite, BA and other airlines are flying with ever more empty seats, particularly in business class.

"Business travellers are flying much less," observes Chris Wills, aviation analyst with Ascend Worldwide. And when they do travel [they] are downgrading classes and moving towards the back of the aircraft."

.......The recession has also resulted in a sharp reduction in cargo demand, down 21.7% in April - a fifth consecutive month at more than 20% below previous year levels, according to IATA figures.

And although "business confidence is improving", air freight volumes are expected to remain low "until inventories adjust to more normal levels", IATA reasons. "

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