LONDON (Reuters UK) - British Airways Plc (BAY) said on Tuesday its traffic fell by 3.5 percent in July, led by slump in non-premium or economy passengers.
The company, which last week reported an 88 percent crash in first-quarter profit amid what it called the worse trading conditions of all time, said the volume of business class flyers edged up on last year but those in the cheaper seats shied away following ticket price hikes.
"Market conditions for the industry remain very difficult on the back of high oil prices and a weak economic environment ... non-premium bookings remain most sensitive to price changes," the company said in a statement.
BA has recently added surcharges to tickets to cover the rising cost of fuel. It has also announced plans to merge with Spanish rival Iberia (IBLA), a deal that could form the basis of a three-way transatlantic alliance with U.S.-based American Airlines (AMR).
The airline said its load factor -- a measure of how well it fills its planes -- dropped over 5.4 percentage points to 75.8 percent during the month.
It did not have difficult comparatives to compete against from last July, when traffic fell 2.9 percent due to a string of disruptions including an attack on Glasgow airport and widespread flooding.
The figures contrasted sharply with Irish low-cost rival Ryanair (RYA) (RYA), which reported a 19 percent jump in July passengers on a load factor of 89 percent.
(Reporting by John Bowker; Editing by Paul Bolding)
