Traffic & capacity stats
British Airways PLC
05 August 2003
TRAFFIC AND CAPACITY STATISTICS - July 2003
Summary of the headline figures
In July 2003, overall load factor fell 2.2 points to 67.9 per cent. Passenger
capacity, measured in Available Seat Kilometres, was 3.0 per cent above July
2002 and traffic, measured in Revenue Passenger Kilometres, was higher by 2.5
per cent. This resulted in a passenger load factor down 0.3 points versus last
year, to 76.4 per cent. The increase in traffic comprised a 1.7 per cent
reduction in premium traffic and a 3.2 per cent increase in non-premium traffic.
The statistics are distorted by the unofficial strike action which occurred
during the month and has impacted both Available Seat Kilometres and Revenue
Passenger Kilometres by some 2 percentage points. Cargo, measured in Cargo
Tonne Kilometres, fell by 7.8 per cent affected by both the strike action and
the temporary closure of the Ascentis World Cargo Centre for maintenance work.
Market conditions
Market conditions are broadly unchanged from last month, the outlook still
fragile with traffic volumes remaining very sensitive to yield. Seat factors
are expected to continue at close to last year's levels. We expect that revenue
in the second quarter will be lower than last year.
Strategic Developments
British Airways posted a pre-tax loss of £45 million (2002: £65 million profit)
for the first quarter to June 30, 2003. The operating profit for the first
quarter was £40 million (2002: £158 million profit). The deterioration in
operating profit reflects the significant reduction in revenue due to continuing
economic weakness, the war in Iraq and the impact of SARS. This was partially
offset by cost savings delivered through the airline's Future Size and Shape
recovery programme.
British Airways announced that the airline had reached agreement with staff over
the introduction of its electronic swiping in and out system and that the trades
unions concerned had agreed to remove the threat of industrial action. The
direct cost of the unofficial industrial action will be in the range £30 million
to £40 million reflecting costs incurred and lost revenue.
British Airways announced its route schedule for the winter 2003 season. The new
schedule reflects the airline's strategy of focusing on more profitable routes.
The network changes, which start on October 26, 2003 unless specified, are:
* A new service from London Gatwick to Turin which will operate on a daily basis
until December, 2003, when a twice daily service commences. In addition, from
April, 2004, there will be a new service from London Gatwick to Dubrovnik in
Croatia which will operate three times each week.
* A new twice daily service from Manchester to Copenhagen, operated by British
Airways CitiExpress.
* Additional frequencies from London Gatwick to the Caribbean commencing in
December 2003. Flights to Antigua will increase from seven to 10 each week and
flights to Barbados will increase from eight to 10 each week.
* Flights to Bilbao in Spain will switch from London Gatwick to London Heathrow.
* Services from London Gatwick to Bremen and Brussels will be suspended from
September 1, 2003, and the service between London Gatwick and Dusseldorf will be
suspended from October 1, 2003. The service between London Heathrow and Zagreb
in Croatia will be suspended from September 14, 2003, and the service between
London Heathrow and San Diego will be suspended from October 26, 2003.
August 5, 2003
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of July Financial year to
date
April through July
BRITISH AIRWAYS GROUP * Change * Change
SCHEDULED SERVICES 2003 2002 (%) 2003 2002 (%)
Passengers carried (000)
UK/Europe 2258 2312 -2.3 9439 9165 +3.0
Americas 651 621 +4.7 2464 2304 +7.0
Asia Pacific 127 140 -9.4 399 516 -22.6
Africa and Middle East 235 214 +9.9 842 795 +5.8
Total 3270 3287 -0.5 13144 12779 +2.9
Revenue passenger km (m)
UK/Europe 1972 1934 +2.0 7777 7330 +6.1
Americas 4338 4187 +3.6 16490 15515 +6.3
Asia Pacific 1345 1435 -6.3 4310 5250 -17.9
Africa and Middle East 1537 1408 +9.2 5662 5280 +7.2
Total 9191 8963 +2.5 34239 33375 +2.6
Available seat km (m)
UK/Europe 2655 2574 +3.2 11257 10507 +7.1
Americas 5468 5330 +2.6 21051 21051 -0.0
Asia Pacific 1847 1788 +3.3 6693 6863 -2.5
Africa and Middle East 2067 1991 +3.8 7998 7947 +0.6
Total 12037 11682 +3.0 46999 46368 +1.4
Passenger load factor (%)
UK/Europe 74.3 75.1 -0.8 pts 69.1 69.8 -0.7 pts
Americas 79.3 78.6 +0.7 pts 78.3 73.7 +4.6 pts
Asia Pacific 72.8 80.3 -7.5 pts 64.4 76.5 -12.1 pts
Africa and Middle East 74.4 70.7 +3.7 pts 70.8 66.4 +4.4 pts
Total 76.4 76.7 -0.3 pts 72.8 72.0 +0.8 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK) 333 362 -7.8 1387 1409 -1.6
Total RTK 1254 1258 -0.3 4801 4738 +1.3
Available tonne km (m) 1846 1794 +2.9 7163 7125 +0.5
Overall load factor (%) 67.9 70.1 -2.2 pts 67.0 66.5 +0.5 pts
Certain information included in this statement is forward-looking and involves
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 'Future Size and Shape' programme, expected future revenues,
financing plans and expected 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. Information on some
factors which could result in material difference to the results is available in
the Company's SEC filings, including, without limitation the Company's Report on
Form 20-F for the year ended March 2002.
Investor Relations
Waterside (HCB3)
PO Box 365
Harmondsworth
UB7 OGB
Tel: +44 (0) 20 8738 6947
Fax: +44( 0) 20 8738 9602
* Comparative numbers from 1 July 2002 have been adjusted to remove the impact
of dba following its disposal on 30 June 2003
This information is provided by RNS
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