Airline passenger figures for July were a cause for celebration for budget carrier Ryanair, but were disappointing for an already troubled British Airways. Compared to the same month last year Ryanair managed push its passenger total up by 13 per cent. BA, however, flew 13.19 million passengers, a drop of 2.6 per cent on the 3.21 million who flew with the flag-carrier in July 2009.

Last month Ryanair managed to sell 7.61 million seats, a personal best for the airline. The figure will be extremely encouraging for the no frills carrier which had a less than stellar start to its second quarter following the effects of the volcanic ash cloud. As European carriers were forced to ground their fleets for almost a week, Ryanair had to cancel close to 10,000 flights, costing it in the region of €50 million.

Stephen McNamara, spokesman for Ryanair, said the results were proof that Ryanair offered passengers an ideal formula. He added that low fares, no fuel surcharge and industry leading service meant passengers had the perfect alternative to expensive, surcharge adding, strike afflicted flag-carriers.

BA has seen passengers choose rival airlines because of the disruption caused by the ongoing battle with its cabin crew and their union. So far this year the airline has experienced 22 days of walkouts which have cost an estimated £150 million.

However, BA is confident that business will start to pick up over the next few months. George Stinnes, group treasurer, said he expected to see more volume over the winter.