OAG withdrew the report after strong criticism from Easyjet

Easyjet dubbed as "nonsense" an earlier claim from OAG that UK domestic budget flights had fallen recently.

OAG has now withdrawn its original findings saying they were "inaccurate", and based on partial data.

Instead, OAG said the number of domestic no-frills flights in the second week of March was up 10% on the same period last year.

OAG also said flights to and from the UK had risen 18% in the period, while the number of low cost flights had jumped 56% in the same period.

'Computer error'

Before the retraction was issued, Easyjet had said it would be demanding an apology from OAG for publishing "incorrect, misleading and potentially damaging information".

Europe and Asia Pacific flight levels are now nearing pre-September 11 levels Lynne Fraser, OAG

OAG later said it had made the error due to "the accidental inflation" of 2003 figures - adding it had double counted Easyjet and Easyjet Switzerland flights.

A "computer program error" was blamed for the discrepancy.

Meanwhile, the report also found worldwide, flights levels rose 3%, with flights to and from the US rising 3% and the American domestic market up 2%.

The Asia Pacific region enjoyed an 8% growth in both domestic and international flights, with a big increase in aviation activity in China.

OAG marketing director Lynne Fraser added: "Overall it is encouraging to see continued steady growth in the global airline industry as a whole.

"Europe and Asia Pacific flight levels are now nearing pre-September 11 levels.

"It will be interesting to see if this growth will be sustained as we are seeing continued competition between airlines and airports and the pressures of ongoing security measures."