Markets: Down

BRITISH AIRWAYS shares fell nearly 7 per cent to 405p last week after ABN Amro cut its profit forecast for Europe's largest airline. The carrier said on Wednesday that first and business-class traffic fell 2.4 per cent in October.

Slowing worldwide economic growth has prompted analysts to revise down earnings expectations for several airlines. "At a time when the market is weak [BA] is putting on more capacity," said Declan Magee, ABN Amro's European airline analyst. "The only way to sell tickets it to cut prices." ABN cut its forecast for BA net income by 17 per cent to pounds 445m, for the year to March. BA will post second-quarter results tomorrow. Copyright: IOS & Bloomberg