British Airways, Europe's third-largest airline, will extend capacity reductions, ground planes and delay deliveries of superjumbo aircraft as demand for air travel shows few signs of rebounding amid the recession.

British Airways, Europe's third-largest airline, will extend capacity reductions, ground planes and delay deliveries of superjumbo aircraft as demand for air travel shows few signs of rebounding amid the recession.

The airline will cut the number of available seats in its summer schedule, which runs from April to October, by 3.5%, up from a previously planned 2.5%. Capacity cuts in the winter schedule will be increased from 4% to 5%.

The airline also said it would delay deliveries of A380 double-decker planes from Airbus, and park Boeing 757s next year as it seeks to conserve cash. Deliveries of the first six A380s will be extended by an average of five months, with the first delivery still due in 2012.

BA also will reduce capital spending by 20% to £580m in the fiscal year ending March 2010.

"The setback in demand for air travel has been quite significant," said group treasurer George Stinnes.

BA's total passenger numbers in June were down by 4.9% at 2.9 million. The airline is seeking to cut about 3700 jobs this fiscal year to help it survive the recession, it said. BA called in a mediator this week after talks broke down with unions.

Shares in British Airways closed 6.5p, or 5.4%, higher at 125.5p, Elsewhere, Irish budget airline Ryanair said it carried 5.84 million passengers in June, 13% more than a year earlier.