An increase in passengers flying British Airways has helped the airlines share price increase 6 per cent to its highest point in two years. The number of fare paying passengers multiplied by the distance they fly rose almost 1.5 per cent in September compared to the same time last year. There was also a 4.3 per cent increase in their first and business class traffic, which is what investors are mostly concerned with.
Airlines everywhere have been struggling a bit since the financial crisis began, along with most companies. The worst of times seemed to be around the start of fall 2009. Since then, there has been modest recovery within the industry. Any recovery numbers going in positive direction are good these days.
Geoff van Klaveren, a Deutsche Bank analyst, commented on the performance of the stock, saying: “We had been anticipating a fairly strong September given the weak base comparison. In the event the figure was a touch lighter than our expectation of 6 per cent improvement.”
He also mentioned that he expected to see next month’s first and business class traffic data to fall back based on the much more critical base comparison.
BA stocks closed 6.5 per cent higher to 254.6 yesterday, the biggest increase since November 12. Overall gains this year total over 35 per cent and therefore place a value of 2.94 billion pounds on the airline.
BA Treasurer, George Stinnes, commented on why the passenger numbers have increased, saying: “What we are seeing this year, as opposed to last, is that people having had a summer break are keen to get back on the road and keen to do business.”