British Airways PLC
05 September 2005
TRAFFIC AND CAPACITY STATISTICS - August 2005
Summary of the headline figures
In August 2005, passenger capacity, measured in Available Seat Kilometres, was
1.1 per cent below August 2004. Traffic, measured in Revenue Passenger
Kilometres, was lower by 0.7 per cent. This resulted in a passenger load factor
up 0.2 points versus last year, to 77.9 per cent. The reduction in traffic
comprised a 4.7 per cent decrease in premium traffic and a 0.2 per cent decrease
in non-premium traffic. Cargo, measured in Cargo Tonne Kilometres, fell by 10.2
per cent. Overall load factor fell by 2 points at 69.5 per cent. In August
2004 operational disruption reduced ASKs by some 1 percent. Industrial action
in August 2005 reduced ASKs by some 4 percent.
Market conditions
The uncertain economic outlook and volatility in both fuel prices and the US
Dollar exchange rate, together with the impact of industrial disruption, make
accurate forecasting even more of a challenge than usual.
Market conditions, however, remain broadly unchanged.
We continue to expect total revenue for the year to March 2006 to grow in the
range of 5.5 to 6.5 per cent. Capacity and volume are still expected to
increase by about 3 per cent with total yield flat.
Costs
The company now has 81% fuel hedging cover in place at an average cost of $45
per barrel for the remainder of the financial year and 40% cover for financial
year 2006/07 at an average cost of $50 per barrel.
Strategic Developments
British Airways departed no flights from 2pm and suspended all flights into and
out of London Heathrow from 6pm on August 11 to 8pm on August 12 as a result of
unofficial industrial action by some of its ground support services staff. The
cargo operations were disrupted for one day longer as the airline focused on
restoring is passenger operations. The unlawful action was taken in support of
employees dismissed from the airline's Heathrow catering supplier, Gate Gourmet.
British Airways agreed the terms of a new deal that improves and extends its
commercial arrangement with Gate Gourmet, which is currently in financial
difficulty. The airline is prepared to sign the deal when Gate Gourmet and the
Transport and General Workers Union reach a satisfactory agreement on their
outstanding labour issues. The airline is not funding the redundancy package
currently on offer to Gate Gourmet employees.
Although the dispute at Gate Gourmet is not fully resolved the airline is
operating a full schedule and onboard catering has significantly improved with a
choice of hot meals now being served on all longhaul departures.
British Airways announced the reorganisation of its customer service and
operations department following the retirement of director Mike Street OBE at
the end of September.
Geoff Want, currently director of safety and security, becomes director of all
ground operations in the UK and overseas including the airline's move in 2008 to
a single terminal operation in Heathrow's Terminal 5.
In a move that aligns product development and delivery, in-flight services will
report to, commercial director Martin George. Robert Boyle, currently director
of commercial planning, will become director planning of a new department that
includes the airline's operations control and operations planning departments.
British Airways launched its biggest ever 'World Offers' winter seat sale with
over three million discounted flights available to over 150 destinations for
travel on selected dates between September 2005 and September 2006. For the
first time many European destinations are being offered with more than 20 per
cent off some flights.
August 5, 2005
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of August Financial year
April through to Aug.
BRITISH AIRWAYS Change Change
SCHEDULED SERVICES 2005 2004 (%) 2005 2004 (%)
Passengers carried (000)
UK/Europe 2063 2170 -4.9 10432 10712 -2.6
Americas 629 646 -2.6 3261 3250 +0.3
Asia Pacific 159 144 +10.0 765 677 +12.9
Africa and Middle East 249 267 -6.6 1209 1238 -2.3
Total 3101 3228 -3.9 15667 15877 -1.3
Revenue passenger km (m)
UK/Europe 1972 2028 -2.7 9791 9689 +1.0
Americas 4243 4318 -1.7 21885 21704 +0.8
Asia Pacific 1631 1476 +10.5 7864 6964 +12.9
Africa and Middle East 1656 1751 -5.4 8088 8196 -1.3
Total 9502 9573 -0.7 47628 46553 +2.3
Available seat km (m)
UK/Europe 2742 2706 +1.4 13777 13304 +3.6
Americas 5268 5420 -2.8 26838 26808 +0.1
Asia Pacific 2121 2004 +5.8 10439 9695 +7.7
Africa and Middle East 2062 2197 -6.1 10603 11069 -4.2
Total 12194 12327 -1.1 61657 60877 +1.3
Passenger load factor (%)
UK/Europe 71.9 74.9 -3.0 pts 71.1 72.8 -1.7 pts
Americas 80.5 79.7 +0.8 pts 81.5 81.0 +0.5 pts
Asia Pacific 76.9 73.6 +3.3 pts 75.3 71.8 +3.5 pts
Africa and Middle East 80.3 79.7 +0.6 pts 76.3 74.0 +2.3 pts
Total 77.9 77.7 +0.2 pts 77.2 76.5 +0.7 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK) 365 406 -10.2 1956 2029 -3.6
Total RTK 1319 1368 -3.6 6707 6672 +0.5
Available tonne km (m) 1897 1912 -0.8 9615 9502 +1.2
Overall load factor (%) 69.5 71.5 -2.0 pts 69.7 70.2 -0.5 pts
Certain statements included in this statement may be forward-looking and may
involve 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 and financing plans, expected future revenues and
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 itemise 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.
Investor Relations
Waterside (HCB3)
PO Box 365
Harmondsworth
UB7 OGB
Tel: +44 (0) 20 8738 6947
Fax: +44( 0) 20 8738 9602
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