Passenger numbers have picked up after last year's downturn

Europe's second-biggest airline said passenger numbers in December rose 3.2%, with growth in premium traffic outstripping growth in economy class.

BA has reaffirmed its 2% to 3% annual revenue growth forecasts despite high fuel costs and pressure to cut fares.

The airline did not expect the Asian tsunami to have any impact on bookings.

Turbulence over?

Higher passenger traffic on routes in Europe, Africa and the Middle East offset a fall in numbers travelling to North and South America, BA said.

Premium traffic rose by 6.8% and non-premium rose by 2.7%, the carrier said.

However, the airline's load factor - the percentage of seats sold - eased a touch, down 0.6% to 72.7% in December.

"These numbers in terms of the volumes and mix in December, many have been a bit better than we anticipated, and we will see what actually comes through when we get what the revenue numbers actually are," said George Stinnes, head of investor relations at BA.

BA axed 13,000 jobs as part of a major cost-cutting drive following the industry's downturn in the wake of the September 11 attacks.

And last year it was dogged by "wildcat" strikes, flight disruptions and surging oil prices.

The company will report its earnings for the third quarter to the end of December next month.