British Airways PLC
3 November 1999
TRAFFIC AND CAPACITY STATISTICS - OCTOBER 1999
Introduction summary of the headline figures
British Airways mainline scheduled Available Seat Kilometres
(ASKs) in October grew by 0.6 per cent (although for the rest of
the year capacity will reduce by around 1%). Traffic, measured in
Revenue Passenger Kilometres (RPKs), fell by 0.2 per cent. Premium
traffic rose 8.2 per cent, with Club World again the strongest
driver. This is set against a 2.4% decline in premium traffic in
October 1998. A second BA Popular Person offer has recently been
launched to continue to drive premium traffic growth. Non-premium
traffic was 1.7 per cent lower. Passenger load factor was 0.6
points lower at 72.0 per cent.
Market conditions
Although trading conditions remain highly competitive, these are
encouraging figures. Yields continue to be under pressure, and
there must be some caution around travel patterns for the
Millennium period, when demand will be difficult to forecast.
Strategic developments
British Airways announced that it has placed an order for 12 new
100 seat Airbus 318s, with options to purchase 12 more aircraft.
The move to the new, smaller A318 is a further step in the
airline's forward looking fleet strategy which will modernise the
carrier's fleet, increase average yields and reduce capacity.
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. British Airways, its subsidiaries and
franchisees now operate around 47% of the slots at London Gatwick.
British Airways and LanChile announced an agreement to co-operate
further on air travel between the UK and Chile. Frequent flyer
miles will be redeemable on each other's services, with further
exploration into codeshare opportunities. The new benefits will
begin in June, shortly after which LanChile will join the oneworld
alliance.
British Airways announced that it is to operate an additional
three services between Heathrow and Lagos, Nigeria, in conjunction
with Nigeria Airways. The airline currently operates a daily 747
400 from Gatwick to Lagos, and will now operate six services a
week from Heathrow to Lagos in co-operation with Nigeria Airways.
Costs
Fuel prices were relatively steady through October, with jet
kerosene currently trading at around $210 a tonne, compared to
approximately $165 per tonne at the end of our first quarter. The
level of fuel hedging for the balance of the financial year is
approximately 85%.
The yen continued to strengthen against sterling. At the end of
October, the value of the yen stood at Yen 173 to the pound,
compared to Yen 175.70 at the end of September 1999.
Other highlights
In the United States, a US District Court Judge unconditionally
dismissed all outstanding claims brought by Virgin Atlantic
Airways against British Airways in the United States.
The British Airways Online Press Office has now gone live. All
press releases for the year, including the traffic statistics
commentary, are now available at www.britishairways.com/press.
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of October Financial year to date
April through October
BRITISH AIRWAYS Change Change
MAINLINE
SCHEDULED SERVICES 1999 1998 (%) 1999 1998 (%)
Passengers carried (000)
UK/Europe 2094 2138 -2.0 14721 15043 -2.1
Intercontinental 1173 1195 -1.8 8276 8254 +0.3
Total 3267 3332 -2.0 22997 23297 -1.3
Revenue passenger km (m)
UK/Europe 1892 1914 -1.2 13420 13606 -1.4
Intercontinental 8607 8608 -0.0 59904 59662 +0.4
Total 10498 10522 -0.2 73323 73268 +0.1
Available seat km (m)
UK/Europe 2860 2821 +1.4 19760 19220 +2.8
Intercontinental 11720 11668 +0.4 80757 80291 +0.6
Total 14580 14489 +0.6 100517 99511 +1.0
Passenger load factor (%)
UK/Europe 66.1 67.9 -1.8 pts 67.9 70.8 -2.9 pts
Intercontinental 73.4 73.8 -0.4 pts 74.2 74.3 -0.1 pts
Total 72.0 72.6 -0.6 pts 72.9 73.6 -0.7 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK) 427 382 +11.8 2579 2523 +2.2
Total RTK 1468 1429 +2.7 9879 9826 +0.5
Available tonne 2127 2072 +2.6 14541 14213 +2.3
km (m)
Overall load 69.0 69.0 +0.0 pts 67.9 69.1 -1.2 pts
factor (%)
TOTAL GROUP SCHEDULED SERVICES
(including Deutsche BA, Air Liberte)
Passengers 3867 3900 -0.9 27069 27216 -0.5
carried (000)
Revenue passenger 10998 10976 +0.2 76978 76699 +0.4
km (m)
Available seat km 15341 15216 +0.8 105958 104780 +1.1
(m)
Total RTK (m) 1517 1476 +2.8 10248 10179 +0.7
Available tonne 2200 2143 +2.7 15063 14725 +2.3
km (m)
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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