Traffic & Capacity Stats-May
British Airways PLC
5 June 2000
TRAFFIC AND CAPACITY STATISTICS - MAY 2000
Summary of the headline figures
Traffic, measured in Revenue Passenger Kilometres, rose by 4.2
per cent in May. Premium traffic grew by 10 per cent and non-
premium traffic grew by 3.2 per cent.
Capacity, measured in Available Seat Kilometres, grew by 1.4 per
cent, with the majority of the growth occurring in Americas and
Africa and Middle East. With traffic up 4.2 per cent, passenger
load factor rose 1.8 points. Non-mainline statistics reflect the
sale of Air Liberte, with traffic and capacity excluded with
effect from April 1, 2000.
Market conditions
As stated in the preliminary results announcement, expected
market conditions for the key summer season give cause for
cautious optimism.
Costs
Work continues on the nine strategic initiatives to reduce
costs. Expenditure on new products for World Traveller, Club
World and Club Europe in the fourth quarter will continue to be
a feature of selling and marketing costs in the course of the
current financial year.
Strategic developments
British Airways completed the sale of its 86 per cent
shareholding in the parent company of Air Liberte to Taitbout
Antibes BV. British Airways' net cash proceeds from the sale are
FFr457 million (£40 million). Accounting rules require purchased
goodwill previously written off to be reinstated, which has led
to a loss on disposal of approximately £56 million in the first
quarter. The net effect of the disposal has been to increase
reserves by £117 million, and improve the net debt to total
equity ratio by 1.2 points and eliminate the continuing trading
losses of Air Liberte.
In conjunction with ten other major airlines, British Airways
announced the creation of the first European, multi-airline, on-
line travel agency. The new site will offer the public access to
the most up-to-date fare information, including the airlines'
lowest branded fares. Passengers will also be able to book
hotels, car hire, insurance and other travel services through
the site.
British Airways launched a new range of business fares on
domestic routes between the UK regions and London, and on twelve
longhaul routes for Club World and First. These fares will offer
businesses a wider range of fares, to take account of differing
needs for flexibility and time of travel.
British Airways has agreed to sell its 14.1 per cent stake in
Hogg Robinson to the management buy-out consortium. Should the
sale be successfully completed, British Airways will recognise a
£4.9 million profit on disposal.
Three new Board Directors have been appointed to the British
Airways Board. Rod Eddington has joined the Board as Chief
Executive. Martin Broughton, Chairman of British American
Tobacco p.l.c. and Dr Martin Read, Managing Director and Chief
Executive of Logica plc, have been appointed Non-Executive
Directors. Sir Michael Angus, currently Non-Executive Deputy
Chairman, will step down from the Board at the Annual General
Meeting on July 11, 2000.
June 5, 2000
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of May Financial year to date
April through May
BRITISH AIRWAYS MAINLINE Change Change
SCHEDULED SERVICES 2000 1999 (%) 2000 1999 (%)
Passengers carried (000)
UK/Europe 2035 1975 +3.1 3972 3896 +2.0
Americas 729 711 +2.5 1453 1400 +3.8
Far East & Australasia 177 170 +4.1 370 349 +6.0
Africa and Middle East 216 201 +7.4 462 427 +8.1
Total 3157 3057 +3.3 6257 6072 +3.1
Revenue passenger km (m)
UK/Europe 1829 1785 +2.5 3587 3492 +2.7
Americas 4986 4831 +3.2 9907 9510 +4.2
Far East & Australasia 1731 1642 +5.4 3601 3361 +7.1
Africa and Middle East 1406 1289 +9.1 3013 2741 +9.9
Total 9952 9548 +4.2 20109 19105 +5.3
Available seat km (m)
UK/Europe 2789 2797 -0.3 5431 5480 -0.9
Americas 6801 6718 +1.2 13269 13233 +0.3
Far East % Australasia 2498 2466 +1.3 4960 4849 +2.3
Africa and Middle East 2453 2363 +3.8 4855 4657 +4.2
Total 14541 14346 +1.4 28515 28219 +1.0
Passenger load factor (%)
UK/Europe 65.6 63.8 +1.8pts 66.1 63.7 +2.4pts
Americas 73.3 71.9 +1.4pts 74.7 71.9 +2.8pts
Far East & Australasia 69.3 66.6 +2.7pts 72.6 69.3 +3.3pts
Africa and Middle East 57.3 54.6 +2.7pts 62.1 58.9 +3.2pts
Total 68.4 66.6 +1.8pts 70.5 67.7 +2.8pts
Cargo tonne km (CTK) 408 355 +14.7 785 674 +16.6
Total RTK (m) 1401 1306 +7.3 2790 2575 +8.4
Available tonne km (m) 2126 2059 +3.3 4157 4059 +2.4
Overall load factor (%)65.9 63.5 +2.4pts 67.1 63.4 +3.7pts
NON MAINLINE SCHEDULED SERVICES*
Passengers carried (000)658 675 -2.6 1,280 1,316 -2.8
Revenue passenger km (m)474 624 -24.0 946 1,243 -23.9
Available seat km (m) 742 1,005 -26.2 1,422 1,970 -27.8
Total RTK (m) 46 62 -25.8 88 123 -28.4
Available tonne km (m) 74 97 -23.9 143 191 -24.9
TOTAL GROUP SCHEDULED SERVICES
Passengers carried(000)3,815 3,732 +2.2 7,537 7,388 +2.0
Revenue passenger km(m)10,427 10,172 +2.5 21,055 20,348 +3.5
Available seat km (m) 15,283 15,351 -0.4 29,937 30,189 -0.8
Total RTK (m) 1,447 1,368 +5.8 2,879 2,698 +6.7
Available tonne km (m) 2,200 2,156 +2.0 4,300 4,250 +1.2
*including DBA, Go & Shareholder Value
Cityflyer Express w.e.f. 5.11.1999, and Waterside (HEA3)
excluding Air Liberte w.e.f. 1.4.2000. PO Box 365, Harmondsworth
For Air Liberte, for the 2 months ended May 1999 West Drayton,
Middlesex UB7 OGB
and 12 months ended March 2000, ASKs were Tel: +44 (0) 20 8738 6947
1,111m and 6,798m respectively. For the same periods,Fax: +44 (0) 20 8738 9602
RPKs were 783m and 4,839m.