Reporting yet another month of yearly declines in passenger traffic on Friday, UK’s leading airline, British Airways PLC, has been forced to undertake some pertinent measures – including further reduction of summer and winter capacity; delays in A380 aircraft deliveries; and laying off more employees this financial year.

In its statement, the London based-carrier said that it intends implementing a 3.5 percent cutback in the number of seats in its summer schedule - from April to October – instead of its earlier-decided 2.5 percent reduction. Meanwhile, the capacity for its winter schedule will be reduced by 5 percent, rather than the originally-planned 4 percent reduction.

Moreover, British Airways – the third ranking airline in Europe – also said that there would likely be a five-month holdup in the delivery of its first six Airbus A380 aircraft, with first due in 2012; and a two-year holdup in the delivery of the remaining six A380s, due in 2016.

In yet another move to withstand the recession, the airline is also planning to slash almost 3,700 jobs this fiscal year. The carrier has called in a state mediator this week, after its talks with unions went kaput.

As per British Airways’ statement the retrenchment measures will help the company reduce 20 percent of its spending planned for the financial year to end-March 2010 - from the earlier-estimated of GBP725 million to GBP580 million!