Here the compression is fully based on diffusing action of the passages.The diffusing action in stator converts absolute kinetic head of the fluid into rise in pressure. The relative kinetic head in the energy equation is a term that exists only because of the rotation of the rotor. The rotor reduces the relative kinetic head of the fluid and adds it to the absolute kinetic head of the fluid i.e., the impact of the rotor on the fluid particles increases its velocity (absolute) and thereby reduces the relative velocity between the fluid and the rotor.