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BA says May traffic up but World Cup may hurt
(Reuters)
Updated: 2006-06-06 08:41

British Airways, Europe's third-largest airline, said passenger traffic rose as expected in May as more holidaymakers travelled in business class, but warned the soccer World Cup could keep people at home in June.

BA said Monday it had increased capacity by 20 percent for flights in and out of Germany over the next month but said some business travel may drop off as fans stay at home during the four-week tournament which starts June 9.

"The flipside is as everyone sits at home watching England hopefully win they are going to be taking less business trips. There is the potential that it reduces the traffic," BA's head of investor relations George Stinnes told reporters.

BA earlier said its May passenger traffic rose by 6.9 percent year on year, driven by a rise in the number of leisure passengers taking business-class seats.

BA said its load factor, a measure of how well it is filling planes, was up 1.3 points versus last year to 74.5 percent in May.

Premium -- or first-and-business-class travel -- rose 13.9 percent in the month.

"Market conditions remain broadly unchanged as significant promotional activity is required to maintain seat factors," BA said in a statement.

June is usually the start of a slowdown in business travel in Europe as people head off on holidays.

Low-cost airlines easyJet and Ryanair are expected to benefit from the huge demand for travel in and out of Germany for the tournament.

Ryanair earlier reported a 22 percent rise in May passenger numbers and said its load factor was steady at 82 percent in the month.

BA shares were trading 2.2 percent weaker at 340-1/4 pence at 1531 GMT.