Passenger traffic at British Airways, Europe's second-largest airline, rose 3.2 per cent in May compared with a year earlier.

BA said in a statement on Friday its load factor - a measure of how many seats it has filled - rose 1.6 points to 73.2 per cent in May.

BA said market conditions remained broadly unchanged and it reiterated forecasts for current-year revenues to rise three to four per cent.

Shares in the airline were trading 0.2 per cent weaker at 272-3/4 pence at 1326 GMT. The stock was 1.7 per cent higher shortly before the data was released. Premium traffic - business and first class - increased 4.2 per cent in the month, against a 3.0 per cent rise in non-premium traffic.

BA posted higher-than-expected annual profits last month after cutting costs and filling more seats, but it continues to face headwinds from high fuel costs and competition from low-cost rivals.

Irish carrier Ryanair said its May passenger numbers rose 34 per cent. The Irish airline posted record profits last week after fare hikes by rivals pushed more passengers its way.

Low-cost rivals Ryanair and easyJet have forced down ticket prices on short-haul European routes, while struggling US carriers are driving down transatlantic prices. BA's passenger traffic is measured in terms of revenue passenger kilometres. The company's chief executive, Rod Eddington, steps down at the end of September to return to his native Australia and will be replaced by former Aer Lingus boss Willie Walsh.