5th Feb 2007 14:15
British Airways PLC05 February 2007 TRAFFIC AND CAPACITY STATISTICS - January 2007 Summary of the headline figures In January 2007, passenger capacity, measured in Available Seat Kilometres, was1.5 per cent above January 2006. Traffic, measured in Revenue PassengerKilometres, was lower by 2.8 per cent. This resulted in a passenger load factordown 3 points versus last year, to 69.5 per cent. The decrease in trafficcomprised a 3.1 per cent decrease in premium traffic and a 2.7 per cent decreasein non-premium traffic. Cargo, measured in Cargo Tonne Kilometres, decreased by18.1 per cent. Overall load factor fell by 3.2 points to 64.9 per cent. This month's statistics were significantly impacted by the threat of industrialaction. Premium volumes suffered the largest reductions as most tickets areflexible and refundable, and customers are easily able to move to othercarriers. The ballot result in favour of strike action was announced on January15 and the strike averted on January 29. Market conditions The market continues to show good demand in premium cabins. The weakness in somenon-premium segments is also still a feature. The revenue outlook for the fourthquarter has been impacted by the threat of industrial action by the T&G. Whilethe strike was averted, the estimated revenue loss is still some £80 million.Revenue guidance for the full year is now 3.25 - 3.75% growth. Costs While cost control remains strong, full year costs excluding fuel are expectedto be some £50 million higher than last year. This reflects higher costs in thefirst quarter. Our full year fuel guidance has been revised down by £40 millionreflecting the reduction in fuel prices. The fuel bill will now be accountedfor on a continuing operations basis, and is expected to be some £1.95 billion. Strategic Developments Following a ballot for industrial action the T&G announced a series of plannedstrikes. As a result the airline cancelled 1,300 flights over a 48 hour period.While the dispute was averted and the schedule reinstated, supported by a seatsale of 500,000 tickets, the impact on lost bookings and revenue is expected tobe some £80 million in the fourth quarter. The BA Forum, which represents British Airways' unions, issued a statementrecommending acceptance of changes to benefits to tackle the £2.1 billiondeficit in the New Airways Pension Scheme (NAPS). The airline reduced its fuel surcharge on longhaul flights under nine hours byfrom £35 to £30 per sector as a result of a fall in the price of oil. British Airways announced modifications to its uniform rules to allow staff towear a symbol of faith openly. The decision came after a comprehensive review ofthe airline's uniform policy and extensive consultation with a wide range ofreligious groups including representatives from the Church of England, theCatholic Church and the Muslim Council of Britain. The new policy was introducedon February 1, 2007. The airline announced a new daily service between London Gatwick and Newquay.The flights will start on Monday March 20, 2007 operating on a Boeing 737. ends February 5, 2007 023/KG/07 Note: Traffic statistics will continue to include BA Connect until the transaction is completed. BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS Month of January Financial year April through to Jan BRITISH AIRWAYS Change ChangeSCHEDULED SERVICES 2007 2006 (%) 2007 2006 (%) Passengers carried (000) UK/Europe 1510 1599 -5.6 19673 19601 +0.4Americas 542 562 -3.5 6301 6243 +0.9Asia Pacific 145 166 -12.3 1556 1592 -2.3Africa and Middle East 333 318 +4.9 2979 2612 +14.1Total 2531 2644 -4.3 30509 30047 +1.5 Revenue passenger km (m) UK/Europe 1390 1425 -2.5 18608 18113 +2.7Americas 3686 3795 -2.9 42479 41925 +1.3Asia Pacific 1499 1727 -13.2 15886 16407 -3.2Africa and Middle East 2292 2172 +5.6 20062 17654 +13.6Total 8867 9119 -2.8 97034 94100 +3.1 Available seat km (m) UK/Europe 2526 2532 -0.2 26087 26669 -2.2Americas 5294 5144 +2.9 54712 52816 +3.6Asia Pacific 1989 2225 -10.6 20162 21367 -5.6Africa and Middle East 2946 2670 +10.3 25912 22864 +13.3Total 12755 12571 +1.5 126873 123715 +2.6 Passenger load factor (%) UK/Europe 55.0 56.3 -1.3 pts 71.3 67.9 +3.4 ptsAmericas 69.6 73.8 -4.2 pts 77.6 79.4 -1.8 ptsAsia Pacific 75.4 77.6 -2.2 pts 78.8 76.8 +2.0 ptsAfrica and Middle East 77.8 81.3 -3.5 pts 77.4 77.2 +0.2 ptsTotal 69.5 72.5 -3.0 pts 76.5 76.1 +0.4 pts Revenue tonne km (RTK) (m) Cargo tonne km (CTK) 338 412 -18.1 3964 4100 -3.3Total RTK 1248 1335 -6.5 13771 13508 +1.9Available tonne km (m) 1923 1961 -2.0 19495 19326 +0.9 Overall load factor (%) 64.9 68.1 -3.2 pts 70.6 69.9 +0.7 pts Certain information included in these statements is forward-looking and involvesrisks and uncertainties that could cause actual results to differ materiallyfrom those expressed or implied by the forward looking statements. Forward-looking statements include, without limitation, projections relating toresults of operations and financial conditions and the Company's plans andobjectives for future operations, including, without limitation, discussions ofthe Company's Business Plan programs, expected future revenues, financing plansand expected expenditures and divestments. All forward-looking statements inthis report are based upon information known to the Company on the date of thisreport. The Company undertakes no obligation to publicly update or revise anyforward-looking statement, whether as a result of new information, future eventsor otherwise. It is not reasonably possible to itemize all of the many factors and specificevents that could cause the Company's forward looking statements to be incorrector that could otherwise have a material adverse effect on the future operationsor results of an airline operating in the global economy. Information on somefactors which could result in material difference to the results is available inthe Company's SEC filings, including, without limitation the Company's Report onForm 20-F for the year ended March 2006. The estimated impact of the averted strike in Quarter 4 reflects the directcosts of the measures and the estimated revenue impacts, both direct andindirect. The estimate of £80 million is based on assumptions the companyconsiders reasonable, but are judgemental. Investor Relations Waterside (HCB3) PO Box 365 Harmondsworth UB7 OGB Tel: +44 (0) 20 8738 694 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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