Passenger numbers up at BA
The latest statistics from British Airways show that it is attracting more budget-minded customers to the airline while business traffic continues to fall.
The airline saw the number of premium passengers fall by 2.5% in June, while economy traffic increased by 7.3% during the same period.
In the April to June quarter, premium traffic fell by 12.4 per cent while the economy cabins saw a 4.9 % increase in traffic.
BA said that the increase in passenger numbers was largely due to strong last minute bookings. However it warned that yields “continue weak’ and that the “outlook is for revenue in the first quarter to be well down on the previous year.”
It added: “The outlook remains fragile with traffic volumes being very sensitive to yield.”
BA also warned that fuel costs were likely to be £100 million higher for the financial year ended March 31, 2004.
Earlier this week the airline saw its long term credit rating cut to ‘junk’ status by Standard & Poor’s.
Meanwhile Amsterdam-based carrier KLM has reported a 9% drop in traffic for the same period in line with capacity cuts. It reported that traffic on its Asia Pacific routes was down 28% compared to the same period last year due to the downturn in travel caused by SARS.
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