04 July 2008

Ã¢â¬ËœDifficultÃ¢â¬â¢ conditions lead to BA passenger drop

Long haul premium and short haul economy flights were the better performing parts of British AirwaysÃ¢â¬â¢ business in June.

Figures for the month show that passenger traffic was down by 3.7% year-on-year.

This comprised a 3.1% decline in premium traffic and a 3.8% fall in non-premium traffic, the airline said.

This resulted in a passenger load factor drop of 3.8 points versus last year, to 76.7 per cent.

The decline came in the face of crude oil prices rising from $110 a barrel at the start of May to $147.

Ã¢â¬ÅâœSignificant increases have been made to prices including surcharges reflecting this rise in fuel costs,Ã¢â¬~ BA said.

Ã¢â¬ÅâœThe UK consumer environment is difficult leading to reduced traffic volumes. Long haul premium and short haul non-premium continue to be the better performing segments of the business.Ã¢â¬~

Following a further review in response to continuing rising oil prices, BA restructured its fuel surcharge for tickets sold in its First, Club World, World Traveller Plus and Club Europe cabins from June 19.

Meanwhile, Virgin Atlantic has attacked a rumoured link-up between BA, American Airlines and Iberia.

A spokesman said: "We would oppose this attempt to create an anti-competitive alliance.

Ã¢â¬ÅâœIt would form a dominant mega-power on transatlantic air routes from two of the largest EU members, forcing up ticket prices for passengers and restricting choice.

Ã¢â¬ÅâœBA/AA/Iberia would together dominate slots at Heathrow Airport and use that power to block new entrants onto key routes in Europe and across the Atlantic.

Ã¢â¬ÅâœThe current crisis in aviation must lead to survival of the fittest, not protection for the fattest.

Ã¢â¬ÅâœRegulators must block this attempt to create such a giant champion of anti-competitive behaviour."

by Phil Davies