Traffic and Capacity Stats
British Airways PLC
05 August 2005
TRAFFIC AND CAPACITY STATISTICS - July 2005
Summary of the headline figures
In July 2005, passenger capacity, measured in Available Seat Kilometres, was 2.4
per cent above July 2004. Traffic, measured in Revenue Passenger Kilometres,
was higher by 4.2 per cent. This resulted in a passenger load factor up 1.4
points versus last year, to 81.1 per cent, a record for July. The increase in
traffic comprised a 6.8 per cent increase in premium traffic and a 3.8 per cent
increase in non-premium traffic. Cargo, measured in Cargo Tonne Kilometres,
fell by 3 per cent. Overall load factor fell by 0.1 points at 72.5 per cent.
Market conditions
Record passenger loads in July indicate that the short term impact of the London
bombings was not material although it is too early to say what the long term
impact will be. When taken together with the uncertain economic outlook and
volatility in both fuel prices and the US Dollar exchange rate, accurate
forecasting is even more of a challenge than usual.
Market conditions, however, remain broadly unchanged.
The continuing strength of the US Dollar and increased surcharges have improved
the revenue outlook. We now expect total revenue for the year to March 2006 to
grow by 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
We now expect fuel costs, net of hedging, to be about £525 million higher than
last year. The company now has 75% hedging cover in place at an average cost of
$43 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 released financial information prepared under International
Financial Reporting Standards (IFRS) for the year ended March 31, 2005. Under
IFRS, the airline's operating profit for the year ended March 31, 2005 increased
from £540 million under UK GAAP to £556 million and profit before tax increased
from £415 million to £513 million. The adoption of IFRS represented an
accounting change only and did not affect the underlying operation of the
business or the airline's cash flows for 2004/5.
At the airline's 2005 annual general meeting chief executive designate Willie
Walsh, commercial director Martin George, Ken Smart, Denise Kingsmill and
Baroness Symons were elected onto the British Airways Board. Stepping down were
former flight operations director Captain Mike Jeffery, Dr Ashok Ganguly and
Lord Renwick of Clifton, in line with corporate governance guidelines on
independence. The meeting included a farewell to Lord King of Wartnaby, British
Airways president emeritus and former chairman, who died on Tuesday July 12.
British Airways' Corporate Responsibility Report for 2004 - 2005 was published
and included details of the airline's double Gold Standard for its diversity
programme, a first time award from Race for Opportunity for its work on racial
equality across the company and a renewed award from Opportunity Now for gender
equality.
The company launched a new online shopping basket facility on ba.com that
enables customers to pay for hotels, car-hire, resort transfers and sightseeing
tours as well as flights in a single transaction.
British Airways launched a seat sale offering thousands of discounted flights on
over 80 routes for travel until November. Longhaul prices start from £299 for a
return flight to New York and shorthaul from £65 for return tickets to Bologna,
Turin, Seville and Amsterdam.
ends
August 5, 2005 076/CW/05
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of July Financial year
April through to July
BRITISH AIRWAYS Change Change
SCHEDULED SERVICES 2005 2004 (%) 2005 2004 (%)
Passengers carried (000)
UK/Europe 2280 2311 -1.3 8367 8541 -2.0
Americas 693 683 +1.4 2630 2603 +1.0
Asia Pacific 176 148 +18.4 606 533 +13.7
Africa and Middle East 259 263 -1.7 959 971 -1.2
Total 3408 3406 +0.1 12562 12648 -0.7
Revenue passenger km (m)
UK/Europe 2157 2112 +2.1 7817 7661 +2.0
Americas 4671 4577 +2.0 17635 17384 +1.4
Asia Pacific 1806 1521 +18.7 6233 5489 +13.6
Africa and Middle East 1735 1742 -0.4 6428 6444 -0.2
Total 10369 9952 +4.2 38113 36978 +3.1
Available seat km (m)
UK/Europe 2826 2757 +2.5 11033 10599 +4.1
Americas 5552 5471 +1.5 21569 21387 +0.8
Asia Pacific 2234 2004 +11.5 8318 7691 +8.1
Africa and Middle East 2174 2248 -3.3 8539 8872 -3.8
Total 12786 12481 +2.4 49458 48549 +1.9
Passenger load factor (%)
UK/Europe 76.3 76.6 -0.3 pts 70.8 72.3 -1.5 pts
Americas 84.1 83.7 +0.4 pts 81.8 81.3 +0.5 pts
Asia Pacific 80.8 75.9 +4.9 pts 74.9 71.4 +3.5 pts
Africa and Middle East 79.8 77.5 +2.3 pts 75.3 72.6 +2.7 pts
Total 81.1 79.7 +1.4 pts 77.1 76.2 +0.9 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK) 406 419 -3.0 1591 1630 -2.4
Total RTK 1440 1413 +1.9 5386 5312 +1.4
Available tonne km (m) 1985 1946 +2.0 7710 7588 +1.6
Overall load factor (%) 72.5 72.6 -0.1 pts 69.9 70.0 -0.1 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
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PO Box 365
Harmondsworth
UB7 OGB
Tel: +44 (0) 20 8738 6947
Fax: +44( 0) 20 8738 9602
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