Severe acute respiratory syndrome (Sars) and the squeeze on corporate profits continue to take their toll on British Airways (BA), which this week disclosed a 2% drop in traffic last month as travellers in Asia shunned flying.
BA, which also reported a 26,4% fall in premium travel as executives opted for lower-cost carriers, partially offset the bad news with a rise in traffic on transatlantic routes.
This emerged as the carrier, which has been plagued by falling revenues and forced to slash ticket prices, sought to play down reports that its pension schemes had run up a $1,5-billion deficit — almost four times last year’s figure.
BA said it had carried 27,3% fewer passengers in the Asia-Pacific region last month, though overall numbers fell 0,5% to 3,06-million. This was because of rises in Europe and on routes to and within the Americas.
BA, which announces its final results on May 19, said transatlantic traffic was up 4%, enabling it to limit the drop in the overall load factor — the percentage of occupied seats — to 0,4% at 69%.
The company is under pressure from some analysts to indicate the full scale of its pensions liabilities on May 19, even though an actuarial review is incomplete.
BA, which has closed its two existing schemes to new members and opened one based on defined contributions rather than final salary, said it had no plans ”at present” to top up contributions.
Ryanair underlined the contrasting performance of low-cost carriers with a rise in passengers last month from 1,1-million last year to 1,47-million. — Â