Baggage restrictions force BA to trim revenue forecast

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British Airways yesterday cut its forecasted growth in full-year revenue to 5%-6% from 6%-7% as a result of the increased security measures that followed the August terrorist threat.

The airline said that most business segments are "recovering well" but that transfer traffic--especially premium--and premium short-haul traffic were "soft" in September owing to carry-on baggage restrictions. "The reintroduction of standard carry-on bag sizes agreed at the end of the month, and harmonization of rules on liquids planned for the end of October, are expected to support the gradual recovery of these segments of the business," BA said.

It reported good news on fuel costs, indicating that expenses will rise £450 million ($849.3 million) over last year rather than the £550-£600 million originally predicted.

BA flew 10 billion RPKs in September, up 1.5% from the year-ago month. Capacity increased 2.5% to 12.68 billion ASKs, dropping load factor 0.8 point to 78.8%. It carried 3.2 million passengers, up 1.1%.

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