Terror keeps air traffic down
AIRLINES are still failing to ersuade business and first-class passengers, particularly Americans, to take to the skies again according to latest figures from British Airways.
The flag carrier reported passenger numbers falling by 10.2% in May - only marginally better than the 10.8% decline recorded in April.
BA's core transatlantic traffic was down 8% in the month and the year-on-year shortfall in the top-price ticket cabins was 9.1%. 'Market conditions remain unchanged,' the airline said. The news sent BA shares down to a three-month low of 197 1/4p, off 3p and nearly 30% cheaper than they were before 11 September.
In an attempt to move back to profitability, BA has cut capacity by more than 12% in a year. That is reflected in UK air space movement figures reported by the part-privatised National Air Traffic Services today. It said the amount of aircraft in the air in May was down 2% and is off 3.5% for the first five months of the year.
The latest figures are being used by Nats as evidence it needs to raise charges to airlines to get cash above the £130m of emergency funding it is negotiating via a £65m equity injection from BAA, the airports operator, and a similar-sized handout from the Government.
