British Airways notched up a slight increase in traffic last month, according to new figures yesterday.

The UK flagship carrier said it carried 3,205,000 passengers during June, a rise of half a per cent on the same month last year.

Its passenger load factor - a measure of how full its planes were - climbed 1.2 per cent to stand at 78.9 per cent.

The increase in traffic comprised an 8.6 per cent rise in premium business and a 4.1 per cent increase in nonpremium traffic.

The airline saw the biggest increase in traffic on Asia Pacific routes, where it carried 158,000 passengers, a rise of nearly 18 per cent.

However, the number of people who flew with BA on UK/European routes fell by

1.1 per cent to 2,133,000.

Meanwhile, British Airways is inviting advertising agencies to bid for its £60 million account for the first time in a decade - and after a 23-year relationship with flamboyant British ad executives Maurice and Charles Saatchi.

British Airways said the decision was part of its normal procurement policy, but a new chief executive in waiting, a planned move to a new terminal at London's Heathrow Airport and increased ticket price pressure from rivals invited industry speculation that other factors also might have contributed.

The Saatchi brothers' firm M&C Saatchi has been asked to pitch for the account again, an airline spokeswoman said, adding that it is crafting a shortlist of four or five firms to join the process.

"It is British Airways policy to review all major contracts across the business in line with their corporate procurement policy," M&C Saatchi chief executive David Kershaw said. "We obviously respect this and look forward to participating in the review in order to continue our successful partnership."

* Budget airline Ryanair reported that it had carried 2.99 million passengers last month - up 31 per cent on its June 2004 total.