Traffic and Capacity Stats

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 This information is provided by RNS The company news service from the London Stock Exchange

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