British Airways to make small operating loss in premium traffic this year

European carriers are heading towards making losses this year in the premium traffic sector because of various factors. There had been a sharp fall in the number of passengers booking first class flights or those traveling in business class across Europe.

Aviation industry experts said that European carriers are set to move into the red in premium traffic segment because of high taxes, economic turmoil and cost-cutting.

The International Air Transport Association (IATA) recently predicted that European carriers are likely to be impacted severely and would be posting combined losses of nearly $1.21 billion (750 million Pounds) in 2012.

The IATA in its report said that the poor economic climate is responsible for this as firms are now engaged into cost cutting and sending their executives in Economy Class or on low-cost carriers, who otherwise used to book first class tickets or travel in business class.

British Airways, which had bucked the trend in August and saw an increase in its global premium traffic by 12.6 percent as compared to last year, also admitted that it is going to make ‘a small operating loss’ in premium traffic for this year.