More business travellers are moving to the back of the plane, downgrading from business- and first-class seats to coach and adding to airline financial woes.

But fliers who still can sit in the front of the cabin are finding some of the best deals in recent memory: Premium fares are down more than 20 percent as airlines discount tickets to fill seats, according to the airline trade group International Air Transport Association.

By comparison, economy fares are down about 15 percent on average, the trade group said.

The slumping demand for premium tickets - down 22 percent in April after a 19.2 percent drop in the first quarter - is hurting airline profitability, and the trade group said the downturn may not have hit bottom yet.

With declining demand and fare discounts, revenue from premium seats fell 44 percent in April.

"Drivers of air travel such as jobs and industrial production were still declining in April, suggesting a solid floor has yet to be found," trade group spokesman Steve Lott said.

Premium traffic in Europe fell 33.6 percent in April compared with a year earlier.

Premium traffic within North America was down 16.5 percent, and traffic from Europe to Asia fell 26.4 percent.

LOS ANGELES TIMES