Traffic Statistics - February 2000
British Airways PLC
3 March 2000
TRAFFIC AND CAPACITY STATISTICS - FEBRUARY 2000
Summary of the headline figures
Premium traffic rose by 11.7 per cent in February, representing the
8th consecutive month of growth over last year.
In line with BA strategy, underlying ASK growth showed only a marginal
increase, despite strong growth in headline capacity due to the 29th
day this February. Premium traffic performed strongly, with underlying
non-premium traffic falling. Premium traffic rose by 11.7 per cent, or
7.8 per cent underlying, with all brands performing strongly. Headline
non-premium traffic rose by 1.9per cent, but fell by 1.6 per cent on
an underlying basis.
British Airways mainline scheduled Available Seat Kilometres (ASKs) in
February were 4 per cent higher than February 1999. Without an
additional day in February, ASKs would have risen by around 0.4 per
cent. Traffic, measured in Revenue Passenger Kilometres (RPKs), was
3.4 per cent higher. On an underlying basis, RPKs fell by 0.1 per
cent. Passenger load factor for February was 0.3 points lower than
last year at 64.5 per cent. Cargo tonne kilometres rose by 13.6 per
cent.
Market conditions
While overcapacity continues in some markets, premium traffic
continues to recover strongly, and the beneficial effect on yield of a
higher mix of premium passengers seen in the December quarter
continues.
Costs
While in the short term unit costs will rise due to fuel prices net of
hedging, product spend and wider use of smaller aircraft, these
factors will be mitigated by our nine profit initiatives. At the
annual Investor Day, British Airways revealed that the average oil
price at which the group is hedged for the next financial year is
around $19.75/bbl. Given hedging of around 60 per cent currently in
place for the year, and if today's forward market were taken to
represent the market's assessment of future fuel prices, fuel costs
will amount to an additional £160 million on top of current year's
costs. Details on the nine profit initiatives were also announced.
These initiatives cover productivity, cost of sale, product
specification, Gatwick, domestic operations, subsidiaries, aircraft
utilisation, procurement and e-business. They will help to deliver the
target of 10 per cent operating margin by 2003.
Strategic developments
British Airways announced its comprehensive e-business strategy, which
comprises four activities; these are e-Commerce, e-Working, e-
Procurement and e-Ventures.
Significant developments are taking place in e-Commerce, where core
commercial activities of sales, marketing and customer service can be
generated on-line. e-Procurement will take full advantage of the
latest, internet-based buying techniques, including auction-style
tendering. The target is to increase the level of on-line purchasing
in the UK from the current 25 per cent to 80 per cent by March 2002,
saving more than £175 million on the airline's current £3.7 billion a
year purchasing spend. e-Working will transform the way the company
carries out its business internally.
e-Ventures includes three major new on-line ventures, in which up to
£100 million of investment is planned over the next two years. The new
businesses will include an on-line travel agency offering customers a
one-stop-shop for flights, hotels, car hire and other travel services,
and a significant expansion of the on-line activities of Air Miles,
our wholly owned subsidiary.
British Airways and Qantas announced the introduction of new services
between the UK and Australia. Together, the airlines' will offer four
daily services between London and Sydney. Qantas will also add a
second daily service between Melbourne and London. Frequencies between
Singapore and Perth will rise to 18 per week, with Singapore-Brisbane
frequencies rising to 11 per week. These legs will be operated by
Qantas 767s, and will offer more connections to London via Singapore.
To support the new schedules, Qantas will lease seven Boeing 767s,
released as a result of the new British Airways fleet strategy.
The oneworld alliance marked its first anniversary by announcing the
formation of a central management team to drive future growth and the
launch of new customer services and benefits. It will be led by Peter
Buecking, who will be stepping down from his current role as Sales and
Marketing Director with Cathay Pacific Airways. As oneworld Managing
Partner, he will report to the alliance's Governing Board, comprising
the Chief Executives of each of the member airlines.
March 3, 2000
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of February Financial year to date
April through
February
BRITISH AIRWAYS
MAINLINE Change Change
SCHEDULED SERVICES 2000 1998/1999 (%) 1999/2000 1998/1999 (%)
Passengers carried
(000)
UK/Europe 1642 1651 -0.6 21143 21752 -2.8
Intercontinental 941 909 +3.6 12145 12135 +0.1
Total 2584 2560 +0.9 33288 33886 -1.8
Revenue passenger
km (m)
UK/Europe 1442 1450 -0.5 19117 19578 -2.4
Intercontinental 6963 6677 +4.3 88316 88395 -0.1
Total 8405 8127 +3.4 107434 107973 -0.5
Available seat km(m)
UK/Europe 2601 2519 +3.3 30351 29952 +1.3
Intercontinental 10440 10023 +4.2 124042 123201 +0.7
Total 13041 12542 +4.0 154393 153153 +0.8
Passenger load
factor (%)
UK/Europe 55.4 57.6 -2.2pts 63.0 65.4 -2.4pts
Intercontinental 66.7 66.6 +0.1pts 71.2 71.7 -0.5pts
Total 64.5 64.8 -0.3pts 69.6 70.5 -0.9pts
Revenue tonne km
(RTK) (m)
Cargo tonne km(CTK) 376 331 +13.6 4140 3908 +5.9
Total RTK 1213 1137 +6.6 14858 14684 +1.2
Available tonne 1881 1799 +4.6 22373 21944 +2.0
km (m)
Overall load 64.5 63.2 +1.3pts 66.4 66.9 -0.5pts
factor (%)
TOTAL GROUP SCHEDULED SERVICES
(including Deutsche BA, Air Liberte and Cityflyer Express wef
5.11.1999)
Passengers carried 3263 3083 +5.8 40049 39928 +0.3
(000)
Revenue passenger 9019 8640 +4.4 113491 113398 +0.1
km (m)
Available seat 13961 13291 +5.0 163484 161446 +1.3
km (m)
Total RTK (m) 1273 1188 +7.1 15466 15236 +1.5
Available tonne 1970 1871 +5.3 23247 22748 +2.2
km (m)
Shareholder Value
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