Airline hit by 13% drop in demand
British Airways has reported a sharp drop in demand for premium travel last month, prompting it to lower its financial forecast.
The carrier cut its expected revenue forecast for March to £25m (€27.4m) as passenger volume dropped by 7.3%. BA said its revenue growth would be lower than the 3.5% expected.
The fall in passenger traffic includes a 13% drop in business passengers. The resulting load factor fell from 79.1% to 72.7%.
"Market conditions remain challenging, with both volume and yield under pressure in all markets," said BA.
"The revenue outlook for the full year (to end March) will be impacted by some GBP20 million - GBP25 million due to the weakness in volume and yield, particularly in US traffic."
Last month BA warned of a £150m operating loss for the current financial year, on top of the £150m predicted for year 2009-10.
The UK national carrier which issued a profits warning in January, also warned that it planned to make cuts in underlying costs, excluding fuel, of £220m in 2009-2010 and £80m in 2010-2011.
BA is still engaged in merger talks with Iberia. Willie Walsh, BA's ceo, said negotiations are making good progress.
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