October traffic statistics
British Airways PLC
03 November 2006
TRAFFIC AND CAPACITY STATISTICS - October 2006
Summary of the headline figures
In October 2006, passenger capacity, measured in Available Seat Kilometres, was
0.8 per cent above October 2005. Traffic, measured in Revenue Passenger
Kilometres, was higher by 1.1 per cent. This resulted in a passenger load
factor up 0.2 points versus last year, to 74.9 per cent. The increase in
traffic comprised a 2.1 per cent increase in premium traffic and a 1.1 per cent
increase in non-premium traffic. Cargo, measured in Cargo Tonne Kilometres,
decreased by 7.2 per cent. Overall load factor increased by 0.5 points to 70.4
per cent.
Market conditions
Overall market conditions are broadly unchanged. Longhaul premium transfer and
shorthaul premium traffic, although recovering, continue to be affected by the
tighter security arrangements currently in place. As a result, total revenue is
now expected to be 4.5 per cent to 5 per cent higher than last year, down half a
per cent from our previous guidance. We welcome the government's announcement
yesterday on the re-introduction of liquids in cabin baggage which brings the UK
into line with the rest of the EU. We will continue to support the BAA as they
work to improve the customer experience across London's airports.
Costs
We expect that total costs, excluding fuel, will be flat compared to last year.
Total fuel costs net of hedging for the year are expected to be some £400
million higher than last year, based on current prices and sterling dollar
exchange rates.
Strategic Developments
British Airways launched a competition for new longhaul aircraft by issuing
tender documents to aircraft and engine manufacturers. Airbus, Boeing as well
as engine manufacturers Engine Alliance, General Electric and Rolls Royce plus
other key component suppliers have been invited to bid. The competition is the
first step in a lengthy process before the airline makes a decision on fleet
growth and replacement for the next decade. Launching the competition
highlights the need to tackle the airline's £2.1 billion pension deficit in the
New Airways Pension Scheme (NAPS).
Martin George, commercial director, and Iain Burns, British Airways' head of
communications resigned their positions with the airline on October 9. They
had been on leave of absence since June 2006 when the Office of Fair Trading and
the US Department of Justice began an investigation focused on long-haul
passenger fuel surcharges. Robert Boyle, British Airways' director of planning
was appointed commercial director and Thomas Coops, former communications
director at Abbey National, was appointed interim head of corporate and media
relations.
The airline launched a promotion offering savings of up to £1,455 on Club World
return fares to 36 longhaul destinations this winter including New York,
Shanghai and Tokyo.
The airline also launched a promotion offering savings of up to £185 to US and
Canadian ski destinations this winter including Denver, Vancouver and Calgary.
Ends
November 3, 2006
109/CW/06
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of October Financial year
April through to Oct
BRITISH AIRWAYS Change Change
SCHEDULED SERVICES 2006 2005 (%) 2006 2005 (%)
Passengers carried (000)
UK/Europe 2064 2024 +2.0 14766 14591 +1.2
Americas 589 615 -4.2 4658 4525 +2.9
Asia Pacific 165 172 -4.3 1130 1111 +1.7
Africa and Middle East 286 248 +15.3 1990 1714 +16.1
Total 3104 3059 +1.5 22543 21940 +2.7
Revenue passenger km (m)
UK/Europe 1960 1869 +4.8 14088 13667 +3.1
Americas 3983 4139 -3.8 31403 30392 +3.3
Asia Pacific 1682 1774 -5.2 11494 11416 +0.7
Africa and Middle East 1951 1693 +15.2 13282 11500 +15.5
Total 9576 9476 +1.1 70268 66974 +4.9
Available seat km (m)
UK/Europe 2693 2749 -2.1 18730 19264 -2.8
Americas 5492 5492 -0.0 39314 37687 +4.3
Asia Pacific 2085 2233 -6.6 14429 14844 -2.8
Africa and Middle East 2512 2210 +13.7 17154 14937 +14.8
Total 12782 12684 +0.8 89627 86732 +3.3
Passenger load factor (%)
UK/Europe 72.8 68.0 +4.8 pts 75.2 70.9 +4.3 pts
Americas 72.5 75.4 -2.9 pts 79.9 80.6 -0.7 pts
Asia Pacific 80.7 79.4 +1.3 pts 79.7 76.9 +2.8 pts
Africa and Middle East 77.7 76.6 +1.1 pts 77.4 77.0 +0.4 pts
Total 74.9 74.7 +0.2 pts 78.4 77.2 +1.2 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK) 407 439 -7.2 2810 2804 +0.2
Total RTK 1375 1380 -0.4 9884 9480 +4.3
Available tonne km (m) 1954 1973 -1.0 13810 13532 +2.1
Overall load factor (%) 70.4 69.9 +0.5 pts 71.6 70.1 +1.5 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. Information on some
factors which could result in material difference to the results is available in
the Company's SEC filings, including, without limitation the Company's Report on
Form 20-F for the year ended March 2006.
Investor Relations
Waterside (HCB3)
PO Box 365
Harmondsworth
UB7 OGB
Tel: +44 (0) 20 8738 694
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