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Falling fuel prices benefit BA
British Airways is to benefit to the tune of £100 million due to falling fuel prices.
The airline said that due to the reductions, the cost of fuel is now expected to be £450 million higher than last year, down from its previous forecast of £550-£600 million.
BA, revealing September traffic figures, said market conditions continue to be good with most segments of the business recovering well from the August airport security alert.
But BA said September transfer passenger numbers, particularly in premium cabins, were affected by carry on baggage restrictions imposed after the August 10 alleged terror plot.
“Volume in premium shorthaul also continues to be soft for the same reason,” the airline said.
“The reintroduction of standard carry on bag sizes agree at the end of the month, and harmonization of rules on liquids planned for the end of October are expected to support the gradual recovery of these segments of the business.”
As a result of the volume shortfall, total revenue is expected to grow at 5-6% rather than 6-7% for the financial year, BA said.
For the month of September the airline’s traffic was 1.5% up on the same month last year, with available capacity up by 2.5%.
Report by Phil Davies
Phil Davies
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