To combat falling passenger numbers, BA has dropped its policy of trying to keep fares up and has instead resorted to slashing prices to drive demand. Many headline fares to destinations such as New York have been cut but these are easily matched by competitors, so BA is concentrating on a range of alternatives to avoid an all-out price war.
• It is offering tour operators big discounts for packages such as American fly-drive holidays or Caribbean breaks. These allow it to sell heavily reduced seats without alienating existing customers or alerting rivals. For example, Kuoni is offering package holidays to Barbados in November with the option of going business class with BA. The upgrade costs £1,344 while a standard flight-only upgrade from BA would be £1,967.