Home    Flights    Hotels    Cars    Destination Guides    Travel News     
  View/Cancel Reservation    Help with Existing Reservations    Low Price Guarantee!    FAQs    Contact Us

 British Airways Hit By Higher Fares, UK Slowdown
July 4, 2008

British Airways said on Thursday its traffic fell 3.7 percent in June, as a ticket price increase and the UK economic slowdown put passengers off traveling on both business and economy flights.

The figures compared with a 0.7 percent fall in May, and were worse than the 1.5 percent drop forecast by analysts last week.

"UK consumers are reluctant to spend more, and seeing as fares have risen there will be some effect (from that), but it's hard to attribute (the decline) to one or the other," BA Head of Investor Relations George Stinnes told reporters.

Gert Zonneveld, transport analyst at Panmure Gordon, said a general fall in traffic had been anticipated by the market.

"We were expecting a decline in premium and non-premium traffic, and we got one," he said.

BA said the group's core premium, or business class, passengers fell 3.1 percent year on year, while economy fares were down 3.8 percent.

The airline's load factor -- a measure of how well it fills planes -- fell 3.8 percentage points to 76.7 percent.

BA raised ticket prices via a fuel surcharge last month, and Stinnes said the group would not rule out further increases despite the impact on passenger volumes.

"In a period of two months brent crude oil prices have risen from USD$110 per barrel to USD$147. Surcharges don't cover the full increases but we have to try to cover costs," he said.

He added that there was too much capacity across all markets as the industry faces the twin threats of high fuel costs and slowing demand, and that BA was close to announcing details of cuts to its winter schedule.

 Previous article. Latest travel news. Next article.
 Discount Flight Search
Select your destination and browse the great discounted airfares.
Departure City:
Arrival City:
  Advanced 

 Discount Hotel Search
Search for hotels and pick up the lowest price on the web.
Destination City:
  Advanced Search 

 Discount Car Search
Search for car availability and check rates from different rental companies at nearly every major airport.
Pick-Up City:
 

 Quick City Guide Search
Get recommendations on attractions, restaurants, and hotels, and up-to-date weather, health tips, and general information for thousands of destinations.
Search for a City:
  Browse Countries 
 Bookmark Travelix.com!

To bookmark this web site press CTRL+D

 Read more about:

Caribbean

Las Vegas

Paris

Scared of commitment? Don't worry, we guarantee we have the lowest Special Internet Rates online. If you find a lower rate, we'll take care of you.
 Read more about it.

This offer valid for stays booked by February 29, 2004 for travel through March 31, 2004.
 Read more.
  Low Price Guaranatee!    Terms and Conditions    Privacy and Security    FAQs    Contact Us
  ©2000-2003 Travelix.com. All Rights Reserved.
  All trademarks are property of their owners.