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Lufthansa Overtakes British Airways as Europe's No. 2 Airline

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Lufthansa Overtakes British Airways as Europe's No. 2 Airline

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Old 22nd Feb 2005, 13:30
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Lufthansa Overtakes British Airways as Europe's No. 2 Airline

Feb. 22 (Bloomberg) -- Deutsche Lufthansa AG has overtaken 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 posted 9 percent more traffic last year as economic growth outside the region encouraged corporate travel and tourism. Demand for flights recovered after slumping 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.''

Growth in premium, or first- and business-class travel, at British Airways outstripped gains in economy-class flights in recent months, according to monthly stock exchange statements. Premium travel gained 12 percent in January compared with a 7.5 percent gain in non-premium traffic.

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
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