British Airways PLC
3 December 1999
TRAFFIC AND CAPACITY STATISTICS - NOVEMBER 1999
Summary of the headline figures
British Airways mainline scheduled Available Seat Kilometres
(ASKs) in November grew by 0.3 per cent. Traffic, measured in
Revenue Passenger Kilometres (RPKs), grew by 2.1 per cent.
Passenger load factor was 1.2 points higher at 66.6 per cent.
Premium traffic rose strongly again, by 6.5%, with non-premium
traffic up1.3%.
Market conditions
Although trading conditions are still highly competitive, these
are encouraging figures. Yields remain under pressure. Patterns
of travel for the Millennium period are still unpredictable. With
significant reductions in schedules, capacity for December and
January will be below last year's levels.
Strategic developments
British Airways and Aer Lingus signed a co-operative agreement to
codeshare on 14 routes across the Irish Sea and to eight
continental European destinations. Both airlines' frequent flyers
will be able to earn and redeem miles on each other's networks.
Subsequent to this, on 2 December 1999, Aer Lingus was confirmed
as the ninth member of the oneworld alliance.
British Airways and American Airlines filed an application with
the US Department of Transportation to codeshare on flights
serving some 75 destinations in the UK, USA, Europe and Africa, as
part of their plans to develop a global marketing alliance.
As part of the annual planning process, British Airways is
developing plans to reduce ongoing costs further and to implement
strategic changes in seven key areas. These areas are Gatwick
operations, subsidiaries, domestic routes, cost of sale, product,
aircraft utilisation and people. Final plans will be in place by
February 2000.
The purchase of CityFlyer Express was completed after British
Airways received approval from the Secretary of State for Trade
and Industry, subject to undertakings which were offered by
British Airways during the Competition Commission's investigation
of the transaction. There is no requirement for British Airways
to divest slots. CityFlyer Express's traffic statistics will be
included in this bulletin from December.
Costs
Fuel prices continued to rise, with jet kerosene currently trading
above $240 a tonne, compared to approximately $210 per tonne at
the end of our second quarter. The level of fuel hedging for the
balance of the financial year is now around 90%.
The Yen continued to strengthen against sterling. At the end of
November, the value of the yen stood close to Yen163 to the pound,
compared to Yen 175.70 at the end of September 1999.
Other highlights
British Airways has completed its Year 2000 preparations and is
confident of its readiness for the new millennium. Nevertheless,
as a measure of prudence, it has in place comprehensive
contingency plans and will have a monitoring centre activated over
the millennium week-end.
British Airways launched a new £25 million transfer baggage
sorting system at London Gatwick. This is the first major baggage
system to be funded by the airline and is geared to handle around
100 bags per minute at peak times. British Airways moves 6 million
bags per year at Gatwick.
The first operation into London City Airport by an aircraft in
British Airways' livery began on 1 November, when British Regional
Airlines began their 3 per day weekday operation from Sheffield.
British Airways announced pre-tax profits for the second quarter
of £40 million. This figure included £17 million disposal profits
and a £44 million restructuring charge relating to planned
redundancies of around 1000 staff. An interim dividend of 5.1p was
declared.
December 3 , 1999
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of November Financial year to
date April
through November
BRITISH AIRWAYS Change Change
MAINLINE
SCHEDULED SERVICES 1999 1998 (%) 1999 1998 (%)
Passengers carried (000)
UK/Europe 1745 1793 -2.7 16468 16837 -2.2
Intercontinental 1035 1006 +2.9 9312 9262 +0.5
Total 2781 2800 -0.7 25780 26099 -1.2
Revenue passenger km (m)
UK/Europe 1541 1567 -1.6 14963 15173 -1.4
Intercontinental 7541 7326 +2.9 67450 67004 +0.7
Total 9082 8893 +2.1 82413 82177 +0.3
Available seat km (m)
UK/Europe 2731 2704 +1.0 22492 21923 +2.6
Intercontinental 10898 10891 +0.1 91656 91193 +0.5
Total 13629 13595 +0.3 114148 113117 +0.9
Passenger load factor (%)
UK/Europe 56.4 57.9 -1.5 pts 66.5 69.2 -2.7 pts
Intercontinental 69.2 67.3 +1.9 pts 73.6 73.5 +0.1 pts
Total 66.6 65.4 +1.2 pts 72.2 72.6 -0.4 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK) 426 371 +14.8 3010 2895 +3.9
Total RTK 1328 1258 +5.5 11217 11087 +1.2
Available tonne km(m)1996 1962 +1.7 16544 16181 +2.2
Overall load 66.5 64.1 +2.4 pts 67.8 68.5 -0.7 pts
factor (%)
TOTAL GROUP SCHEDULED SERVICES
(including Deutsche BA, Air Liberte)
Passengers carried 3362 3344 +0.5 30433 30562 -0.4
(000)
Revenue passenger 9625 9347 +3.0 86611 86063 +0.6
km (m)
Available seat km(m)14421 14330 +0.6 120380 119122 +1.1
Total RTK (m) 1382 1304 +6.0 11640 11485 +1.3
Available tonne km(m)2072 2034 +1.9 17142 16764 +2.3
Shareholder Value
Waterside (HEA3)
PO Box 365, Harmondsworth
West Drayton, Middlesex UB7 OGB
Tel: +44 (0) 181 738 6947
Fax: +44 (0) 181 738 9602
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