European airlines enjoy traffic recovery but are blighted by fuel costs

Airline Industry Information, Oct 1, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

The Association of European Airlines (AEA) has said that rising fuel costs along with increased low-cost airline competition are likely to impact on its members' 2004 profits.

The AEA said that traffic had increased over the first six months of 2004. Routes to Asian destinations had increased by 27.7% in July compared to the same month in 2003 and North Atlantic routes had recovered to pre-11 September 2001 levels.

However a spokesperson for the AEA said that any hopes of its members producing a profit in 2004 were diminishing with the continued rise in fuel prices and the intense competition from low-cost airlines, reported The Associated Press.

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