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What's really happening with premium demand. no.2


In the space of a week, British Airways’ share price has dropped by a third. Major competitors, Air France-KLM and Lufthansa, predictably suffered falls too, but only of half the magnitude of BA’s. These are extreme contrasts and there doesn’t appear to be a “fundamental” reason why there should be such a differential. [345 words]

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Graphs and data:

  • Proportions of premium capacity: North America to Europe routes: Nov-08
  • Premium seat capacity: Europe to USA: Nov-07 and Nov-08
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