British Airways PLC
05 June 2007
TRAFFIC AND CAPACITY STATISTICS - May 2007
Summary of the headline figures
In May 2007, passenger capacity, measured in Available Seat Kilometres, was 0.1
per cent below May 2006. Traffic, measured in Revenue Passenger Kilometres, was
lower by 2.1 per cent. This resulted in a passenger load factor down 1.5 points
versus last year, to 73.3 per cent. The decrease in traffic comprised a 2.1 per
cent decrease in premium traffic and a 2.1 per cent decrease in non-premium
traffic.
May 2006 was a particularly strong month with premium up 13.9 per cent and
non-premium up 5.7 per cent leading to soft year on year performance. The
unusual timing of bank holidays in the UK and continental Europe, continuing
carry-on baggage restrictions at Heathrow and the weak US dollar also impacted
volumes in May 2007. Premium growth in the first half of the year is unlikely
due to high comparative seat factors.
Cargo, measured in Cargo Tonne Kilometres, fell by 2.0 per cent. Overall load
factor rose 0.6 points to 69.2 per cent.
Market conditions
Some weakness in non-premium, particularly on the North Atlantic and in
shorthaul domestic, continues. Premium demand is expected to continue driving
high seat factors. Visibility around forward bookings continues to be limited.
Revenue and costs
The continuing weak US dollar, while not helpful to revenue, is having a
positive impact on costs.
Strategic Developments
The airline filed an application with the US DoT for permission to operate
services between any point in the EU and US to enable it to grow the most
profitable part of its business.
Agreement was reached on new working practices for all 6,000 ground staff
involved in the move to Heathrow's Terminal 5. The final ballot, by check-in and
customer service staff, showed overwhelming support for more efficient ways of
working, ahead of the move to the airline's new home in Terminal 5.
British Airways and Amadeus signed an agreement for the distribution of the
airline's fares and inventory to Amadeus travel agencies and corporations. All
four GDSs have now agreed to new contracts.
The company joined TPG Capital, Vista Capital, Inversiones Ibersuizas and
Quercus Equity to investigate a possible consortium bid for Iberia. No guarantee
was given that a formal bid will be made. The airline has previously ruled out
further capital investment as part of any consortium bid and will not make an
independent bid for the airline.
British Airways' 13 flights a week to Vancouver move from London Heathrow
Terminal 4 to Terminal 1 on June 1, 2007 to ease congestion and provide smoother
connections for customers.
Eight new Airbus A320 family aircraft were ordered for delivery in 2008-2010
marking the first step towards establishing a single fleet across the British
Airways' network. The airline will also upgrade the Gatwick shorthaul fleet by
replacing the oldest 14 Boeing 737s with Airbus A319 aircraft.
ends
June 5, 2007 070/TC/07
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of May Financial year
April through to May
BRITISH AIRWAYS Change Change
SCHEDULED SERVICES 2007 2006 (%) 2007 2006 (%)
Passengers carried (000)
UK/Europe 1783 1791 -0.5 3524 3502 +0.6
Americas 645 668 -3.5 1278 1338 -4.5
Asia Pacific 140 144 -3.2 293 304 -3.7
Africa and Middle East 266 267 -0.4 552 546 +1.1
Total 2833 2871 -1.3 5647 5690 -0.8
Revenue passenger km (m)
UK/Europe 1767 1770 -0.2 3484 3461 +0.6
Americas 4336 4499 -3.6 8600 9012 -4.6
Asia Pacific 1417 1455 -2.6 2981 3061 -2.6
Africa and Middle East 1781 1777 +0.2 3698 3640 +1.6
Total 9302 9501 -2.1 18763 19175 -2.2
Available seat km (m)
UK/Europe 2537 2460 +3.1 4981 4807 +3.6
Americas 5612 5673 -1.1 11038 11146 -1.0
Asia Pacific 2021 2078 -2.7 3984 4095 -2.7
Africa and Middle East 2526 2494 +1.3 5026 4897 +2.6
Total 12696 12705 -0.1 25030 24945 +0.3
Passenger load factor (%)
UK/Europe 69.7 71.9 -2.2 pts 69.9 72.0 -2.1 pts
Americas 77.3 79.3 -2.0 pts 77.9 80.9 -3.0 pts
Asia Pacific 70.1 70.0 +0.1 pts 74.8 74.7 +0.1 pts
Africa and Middle East 70.5 71.3 -0.8 pts 73.6 74.3 -0.7 pts
Total 73.3 74.8 -1.5 pts 75.0 76.9 -1.9 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK) 402 411 -2.0 787 820 -4.0
Total RTK 1340 1360 -1.5 2675 2760 -3.1
Available tonne km (m) 1936 1981 -2.3 3825 3954 -3.3
Overall load factor (%) 69.2 68.6 +0.6 pts 69.9 69.8 +0.1 pts
Certain information included in these statements is forward-looking and involves
risks and uncertainties that could cause actual results to differ materially
from those expressed or implied by the forward looking statements.
Forward-looking statements include, without limitation, projections relating to
results of operations and financial conditions and the Company's plans and
objectives for future operations, including, without limitation, discussions of
the Company's Business Plan programs, expected future revenues, financing plans
and expected expenditures and divestments. All forward-looking statements in
this report are based upon information known to the Company on the date of this
report. The Company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future events
or otherwise.
It is not reasonably possible to itemize all of the many factors and specific
events that could cause the Company's forward looking statements to be incorrect
or that could otherwise have a material adverse effect on the future operations
or results of an airline operating in the global economy. Fuller information on
some factors which could result in material difference to the results is
available in the company's Annual Report for the year ended 31 March 2007, which
is available on www.bashareholders.com.
Investor Relations
Waterside (HCB3)
PO Box 365
Harmondsworth
UB7 OGB
Tel: +44 (0) 20 8738 694
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