Skip to main content
Business
CNN Europe CNN Asia
On CNN TV Transcripts Headline News CNN International About CNN.com Preferences
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SERVICES
 
 
 
SEARCH
Web CNN.com
powered by Yahoo!

BA, KLM flying more passengers

BA has cut jobs and reduced flights since the terrorist attacks in the U.S.
BA has cut jobs and reduced flights since the terrorist attacks in the U.S.

   Story Tools

LONDON, England -- British Airways, Europe's largest carrier, said on Thursday it flew more passengers in September than a year earlier but the increase was distorted by the devastating effect of the terrorist attacks in the United States.

BA said passenger traffic -- measured by the number of paying customers -- rose 4.5 percent in September from the same month in 2001.

Its overall load factor -- based on the average number of seats per flight -- increased 9.7 percentage points in the same month to 69.9 percent from 60.2 percent a year earlier.

"Comparisons of September 2002 traffic and capacity statistics with September 2001 must take unto account the impact of the terrorist attacks and the closure of U.S. air space for four days," the airline said in a statement.

RELATED

Along with other major carriers, BA was hit hard by the sharp fall in demand for air travel after the September 11 attacks. The decline in the sector has been aggravated by the global economic slowdown and volatile financial markets.

It has cut more than 13,000 jobs and is overhauling its European operations to take on low-cost operators.

BA, which lost £2 million ($3.1 million) a day during the three months following the terrorist attack, now has a cash reserve of about £1.5 billion to help the carrier through any Middle East conflict, including a possible war with Iraq.

The airline's net income in the three months to June 30 rose to £40 million, or 3.7 pence a share, from £26 million, or 2.4 pence a share, in the year earlier period. Sales fell 10.7 percent to £2.05 billion.

KLM has been steadily adding flights as more people return to the skies
KLM has been steadily adding flights as more people return to the skies

BA (BAY) was up 3.6 percent to 101.75 pence in mid-afternoon trading on Thursday in London.

Earlier on Thursday, KLM Royal Dutch Airlines said its overall load factor also improved in September -- rising 4.8 percentage points to 81.6 percent from 76.8 percent a year earlier.

The passenger load factor rose 4.7 percentage points to 84.1 percent in September from 79.4 percent in the same month in 2001, citing a rise in European passenger traffic.

"Significant traffic growth in the Europe route area outpaced the eight percent capacity increase and resulted in an unprecedented load factor of 80.6 percent for our European network in September. Except for the Mid and South Atlantic route area, where traffic remained weak, traffic in all other areas was strong," KLM said in a statement.

KLM, Europe's fourth-biggest airline by capacity and traffic, has been steadily adding back capacity since cutting fights and grounding aircraft beginning last year.

In July, KLM posted a slight fall in first-quarter net income to 11 million -- in line with forecasts -- and repeated it expected to make an operating profit in the full year.

Operating profits rose to 41 million euros from 23 million in the quarter last year, with net income down from 19 million.

KLM shares were 0.6 percent to 8.50 euros in mid-afternoon trading on Thursday in Amsterdam.



Story Tools

Top Stories
European stocks cheered by STM
Top Stories
CNN/Money: Security alert issued for 40 million credit cards
 
 
 
 
  SEARCH CNN.COM:
© 2004 Cable News Network LP, LLLP.
A Time Warner Company. All Rights Reserved.
Terms under which this service is provided to you.
Read our privacy guidelines. Contact us.
external link
All external sites will open in a new browser.
CNN.com does not endorse external sites.