British Airways PLC
04 November 2005
TRAFFIC AND CAPACITY STATISTICS - October 2005
Summary of the headline figures
In October 2005, passenger capacity, measured in Available Seat Kilometres, was
5.7 per cent above October 2004. Traffic, measured in Revenue Passenger
Kilometres, was higher by 6.4 per cent. This resulted in a passenger load
factor up 0.5 points versus last year, to 74.7 per cent. The increase in
traffic comprised a 6.8 per cent increase in premium traffic and a 6.3 per cent
increase in non-premium traffic. Cargo, measured in Cargo Tonne Kilometres,
fell by 4.7 per cent. Overall load factor fell by 1.2 points at 69.9 per cent.
Market conditions
Continued capacity restraint by the industry is resulting in a more stable price
environment. This coupled with good demand for premium traffic (in particular
the growth in leisure premium) has delivered a small yield improvement. Assuming
continued stable economies and a rational capacity environment, some yield
improvement is now expected for this financial year. Consequently, revenue is
now expected to grow by between 6% - 7% (up 0.5 points from our previous
guidance).
Despite the improved revenue outlook, market conditions remain broadly unchanged
as significant promotional activity is required to maintain seat factors.
Costs
Fuel costs continue to be a challenge for the industry, but our guidance is
unchanged with total fuel costs expected to be up by £525 million this year.
Strategic Developments
British Airways' winter schedule, which started on October 30, 2005, saw the
airline's services from London Heathrow to India increase from 19 to 35 flights
each week. A new five per week service to Bangalore started, frequencies to
Mumbai doubled to two flights per day and flights to Chennai increased from two
to six each week. The airline will start a new service from London Gatwick to
Grenoble in December. Flights from Birmingham to Rome and Vienna, operated by
British Airways CitiExpress, were suspended.
British Airways appointed Bartle Bogle Hegarty (BBH) as its worldwide creative
advertising agency. The decision followed a review of the existing contract and
a formal competitive pitch process. BBH start their contact on November 15,
2005.
Royal Jordanian announced that it is to join the oneworld alliance. Japan
Airlines (JAL) announced its intention to seek membership of oneworld.
November 4, 2005
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of October Financial year
April through to Oct
BRITISH AIRWAYS Change Change
SCHEDULED SERVICES 2005 2004 (%) 2005 2004 (%)
Passengers carried (000)
UK/Europe 2024 2019 +0.3 14591 14852 -1.8
Americas 615 571 +7.6 4525 4421 +2.4
Asia Pacific 172 148 +16.8 1111 971 +14.4
Africa and Middle East 248 256 -3.2 1714 1751 -2.1
Total 3059 2994 +2.2 21940 21995 -0.2
Revenue passenger km (m)
UK/Europe 1869 1808 +3.4 13667 13422 +1.8
Americas 4139 3841 +7.8 30392 29557 +2.8
Asia Pacific 1774 1526 +16.3 11416 9992 +14.3
Africa and Middle East 1693 1729 -2.1 11500 11630 -1.1
Total 9476 8904 +6.4 66974 64601 +3.7
Available seat km (m)
UK/Europe 2749 2644 +4.0 19264 18558 +3.8
Americas 5492 5115 +7.4 37687 37004 +1.8
Asia Pacific 2233 2008 +11.2 14844 13626 +8.9
Africa and Middle East 2210 2230 -0.9 14937 15422 -3.1
Total 12684 11998 +5.7 86732 84610 +2.5
Passenger load factor (%)
UK/Europe 68.0 68.4 -0.4 pts 70.9 72.3 -1.4 pts
Americas 75.4 75.1 +0.3 pts 80.6 79.9 +0.7 pts
Asia Pacific 79.4 76.0 +3.4 pts 76.9 73.3 +3.6 pts
Africa and Middle East 76.6 77.5 -0.9 pts 77.0 75.4 +1.6 pts
Total 74.7 74.2 +0.5 pts 77.2 76.4 +0.8 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK) 439 461 -4.7 2804 2877 -2.5
Total RTK 1380 1346 +2.5 9480 9318 +1.7
Available tonne km (m) 1973 1892 +4.3 13532 13245 +2.2
Overall load factor (%) 69.9 71.1 -1.2 pts 70.1 70.4 -0.3 pts
Certain statements included in this statement may be forward-looking and may
involve 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 business and financing plans, expected future revenues and
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.
Investor Relations
Waterside (HCB3)
PO Box 365
Harmondsworth
UB7 OGB
Tel: +44 (0) 20 8738 6947
Fax: +44( 0) 20 8738 9602
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