British Airways reported a fall in passenger traffic and warned the economic and political environment remained challenging.

The airline said the number of passengers carried rose from 2.74 million in January compared with 2.69 million carried in the same month last year.

Traffic figures, a key measure of how much revenue BA generates for each passenger per kilometre travelled, fell by 1.8 per cent.

For the financial year to date, starting in April, BA said passenger numbers were down 2.9 per cent at 32.7 million while traffic was down 4.3 per cent.