BA is to end the discount available to former British Airways shareholders early next year.
The 10 per cent discount on fares had been available to customers previously holding shares in British Airways (prior to BA’s merger with Iberia and the creation of the International Airlines Group), but was not extended to new IAG shareholders.
The airline has now announced that the shareholder discount scheme will end at midnight on January 31, 2015.
In a statement, the carrier said: "Since the merger in January 2011 we have been reviewing the discount scheme. It was kept open to former British Airways shareholders, but it has not been available to former Iberia holders or new IAG shareholders. It has never been available to institutional shareholders, who own the majority of our shares.
"After continuing with the discount for almost four years, with the recent announcement of our intention to resume dividend payments we feel it is the right time to close the scheme. We will of course continue to offer competitive prices via ba.com and hope that you will continue to support British Airways’ business."
The airline added that take-up of the discount was “extremely low”, and said that "feedback from shareholders has been that they value a dividend more".
Shareholders looking to take advantage of the discount should note that they can book flights up until the deadline on January 31, for travel up to 355 days in advance.
IAG recently announced plans to pay its first dividends, stating that it remains "confident in meeting our 2015 financial targets which we see as the trigger to introducing a dividend".
Mark Caswell
