(No Ratings Yet)
Loading ...
May 6 (Bloomberg) — British Airways Plc said passenger traffic rose for the first time in 14 months in April, spurred by a jump in economy class travel over the Easter holiday. Traffic, or the customer total multiplied by the distance flown, gained 0.9 percent compared with a year earlier, London- based British Airways said in a statement today. While Easter helped lift economy travel 5.2 percent, the reduction in working days contributed to an 18 percent drop in premium-class custom.
Demand for flights has tumbled as the recession causes companies to cut travel budgets and prompts people to holiday closer to home. Finance Director George Stinnes said that with April’s figures skewed by the timing of Easter, which last year fell in March, there’s no indication that the slump is easing. “The market conditions really haven’t changed,” Stinnes said on a conference call. First- and business class sales are “under pressure” and yields, or average revenues per seat, are falling as the carrier reduces fares to lure more passengers.
British Airways, whose passenger traffic last gained in February 2008, rose 8 pence, or 4.8 percent, to 173.9 pence in London. Shares of Europe’s third-largest airline have fallen 3.2 percent this year, cutting its market value to 2 billion pounds ($3 billion). Stinnes said it’s too early to assess the impact of the outbreak of swine flu on the carrier’s business. Airline stocks tumbled last month amid concern that the spread of the disease would further depress travel demand.
Asian Travel News and Guides