British Airways flights are now taking off with almost a quarter of their seats empty after higher airfares and a slowing economy led to 87,000 fewer passengers using the airline last month.

The airline said it carried 2.9 per cent fewer passengers than the same month last year with traffic to Africa, the Middle East and the United States the weakest.

The load factor on BA’s aircraft, a measure of how full each plane is when it flies, fell 3.8 per cent to 76.7 per cent. This means nearly one in every four seats is now empty on BA flights.

The traffic figures are disappointing as June typically signals the beginning of the summer holiday season and an increase in the number of passengers travelling.

BA blamed the fall on “significant” increases in ticket prices due to the record high price of oil and a tough consumer environment in the UK.

The high cost of fuel is troubling all carriers and American Airlines gave warning yesterday that it could cut 7,000 jobs and ground yet more aircraft. It expects to take a one-off charge of $1.3 billion to cover the cost of redundancies.

In an attempt to reduce costs further BA, AA and Iberia, the Spanish flag carrier, are expected to try to merge their operations later this month.

The Times reported yesterday that the three airlines were close to seeking approval from competition regulators to press ahead with the deal.

A BA spokeswoman said yesterday: “BA has been in talks with American Airlines and Iberia for some time, but no decisions have been reached.”

The proposed merger has been attacked by rivals, including Virgin Atlantic, who claim it will limit competition.

A Virgin spokesman said: “We would oppose this attempt to create an anticompetitive alliance. It would form a dominant mega-power on trans-Atlantic air routes from two of the largest EU members, forcing up ticket prices for passengers and restricting choice.”

Times Recommends

• Gazprom brands Ukraine 'a barbarian' in gas row
• Services sector raises fears over UK jobless
• Retailers surge as profits survive sales plunge