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Deutsche Lufthansa AG overtook British Airways Plc as Europe's
second-biggest airline by passenger traffic after the German carrier
increased seat capacity to meet a rebound in demand.
Lufthansa, Germany's national carrier, increased its traffic, measured as
the number of passengers multiplied by the distance flown, by 13 percent
last year to 109.5 billion revenue passenger kilometers, according to the
Brussels-based Association of European Airlines. British Airways posted a 6
percent gain to 106.5 billion revenue passenger kilometers.
European airlines reported 9 percent more traffic last year as economic
growth outside the region encouraged corporate travel and tourism. Demand
for flights recovered after it slumped in the first half of 2003 because of
war in Iraq, weak economies and the outbreak of severe acute respiratory
syndrome.
``We've been focusing on targeted and demand-driven capacity
management,'' said Christine Ritz, a spokeswoman for Cologne, Germany-based
Lufthansa.
Paris-based Air France-KLM Group took over British Airways' spot as the
region's largest carrier after the French and Dutch airlines merged in May.
British Airways, based in London, is driving gains in premium-class travel
and has added routes to destinations in
China including Shanghai, as
economic growth spurs demand.
``We've seen good volume improvement, but it's not just about filling
aircraft,'' said Kate Gay, a British Airways spokeswoman. ``We're working to
make our company as profitable as we can.''
Premium Travel
Growth in premium, or first- and business-class travel, at British
Airways outstripped gains in economy-class flights in recent months,
according to the company's monthly stock exchange statements. Premium travel
gained 12 percent in January compared with a 7.5 percent gain in non-premium
traffic.
Europe's largest airline by market value is Lufthansa at 4.86 billion
euros ($6.41 billion), while British Airways is second largest at 2.88
billion pounds ($5.49 billion). Air France-KLM is third with a market value
of 3.82 billion euros. Southwest Airlines Co. is the carrier with the
largest market value in the world at $11 billion.
``Size for size's sake isn't the best route to rewarding your
shareholders, as BA has found,'' said Stephen Clapham, an airlines analyst
at Williams de Broe in London.
British Airways shares have gained 14 percent this year, while Lufthansa
has increased 0.2 percent. Air France-KLM has risen 0.8 percent.
Europe's largest airline by revenue is Air France-KLM with sales of 5.13
billion euros for the three months through September 30, the most recent
comparable period. Lufthansa is second with revenue of 4.47 billion euros
and British Airways is third with 2.03 billion pounds.
The association's figures include travel on tickets obtained by cashing
in Lufthansa's Miles & More frequent-flier vouchers, which the airline
doesn't include in its monthly traffic numbers. |
