3rd Apr 2008 14:15
British Airways PLC03 April 2008 TRAFFIC AND CAPACITY STATISTICS - March 2008 Summary of the headline figures In March 2008, passenger capacity, measured in Available Seat Kilometres, was1.6 per cent below March 2007. Traffic, measured in Revenue PassengerKilometres, fell by 2.8 per cent. This resulted in a passenger load factordecrease of 0.9 points versus last year, to 75.4 per cent. Traffic comprised a5.0 per cent decrease in premium traffic and a 2.3 per cent fall in non-premiumtraffic. Comparisons between March 2007 and 2008 are complicated by the timingof Easter, which fell in April in 2007, and by the de-linking of UK schoolholidays from the Easter period and into the middle of April. This altered bothpremium and non-premium travel patterns, an impact which is also likely to beseen in April's statistics. Cargo, measured in Cargo Tonne Kilometres, rose by 11.5 per cent. The figures also reflect the events which surrounded the opening of Terminal 5on 27 March. The impact was borne by the shorthaul schedule, where there were300 cancelled flights, equating to 0.2 percentage points of capacity. Thefinancial impact of these events is estimated to be around £16 million,reflecting all costs associated with the disruption and lost revenueopportunities. Although there remains a small number of cancellations for todayand tomorrow, the Terminal 5 performance is steadily improving. Market conditions Market conditions remain unchanged. Underlying conditions in longhaul premiumtraffic continue to be strong, while shorthaul premium and longhaul non-premiumcontinue to be weak. Strategic Developments The opening of Terminal 5 was affected by operational problems that caused majordisruption. The airline is working hard with BAA to resolve these issues. British Airways increased its stake in the Spanish airline Iberia to 13.15 percent. The purchase reflects the strategic importance of Iberia to BA. Theairline bought 28,745,767 shares at an average price of €2.34 per share. At its annual Investor Day British Airways released its market guidance for thefinancial year 2008/9. Revenue is forecast to increase by 4 - 4.5 per cent toover £9.1 billion, based on capacity measured in available seat kilometers(ASKs) up 2.4 per cent. Fuel costs are expected to be up by some £450 million to£2.5 billion, an increase of 20 per cent British Airways is launching a dozen new routes from Gatwick to Europeanhotspots this summer. The new routes to Alicante, Faro, Gibraltar, Ibiza,Malaga, Malta, Palma, Paphos, and Tunis replace services previously operated byfranchise partner GB Airways following the end of that franchise agreement.There are also new flights to Antalya, Genoa and Poznan. The Civil Aviation Authority announced that Heathrow's charges over five yearsfrom April 1, 2008 will rise by 23.5 per cent above inflation in year one and by7.5 per cent above inflation each year between 2009 and 2013. BAA will beallowed a cost of capital of 6.2 per cent. BA said the decision demonstratesconclusively that the airport regulation system has failed, to the detriment ofcustomers. The first Airbus A380 passenger service flew into Heathrow. British Airways willhandle maintenance of the Singapore Airlines A380s at Heathrow. BA flight crewbegin preparations for delivery of the airline's own fleet of 12 A380s fromApril 2012. BA's Captain Jim Harlow is the first UK airline pilot to qualify tofly the A380. ends April 3, 2008 045/TC/08 BRITISH AIRWAYS SCHEDULED SERVICES Financial year Month of March April to March Change Change 2008 2007 (%) 2007/8 2006/07 (%)Passengers carried (000)UK/Europe 1648 1695 -2.8 20269 20250 +0.1Americas 610 614 -0.6 7478 7371 +1.5Asia Pacific 153 163 -6.0 1818 1844 -1.4Africa and Middle East 306 325 -5.7 3553 3597 -1.2Total 2718 2796 -2.8 33118 33061 +0.2 Revenue passenger km (m)UK/Europe 1613 1623 -0.6 19981 19966 +0.1Americas 4139 4158 -0.5 50392 49728 +1.3Asia Pacific 1586 1674 -5.3 18729 18851 -0.6Africa and Middle East 2062 2214 -6.9 23843 24296 -1.9Total 9400 9669 -2.8 112946 112842 +0.1 Available seat km (m)UK/Europe 2399 2386 +0.6 29084 28044 +3.7Americas 5382 5408 -0.5 65941 64870 +1.7Asia Pacific 1914 1996 -4.1 23256 23937 -2.8Africa and Middle East 2771 2879 -3.8 31206 31448 -0.8Total 12466 12669 -1.6 149488 148299 +0.8 Passenger load factor (%)UK/Europe 67.2 68.0 -0.8 pts 68.7 71.2 -2.5 ptsAmericas 76.9 76.9 +0.0 pts 76.4 76.7 -0.3 ptsAsia Pacific 82.8 83.9 -1.1 pts 80.5 78.8 +1.7 ptsAfrica and Middle East 74.4 76.9 -2.5 pts 76.4 77.3 -0.9 ptsTotal 75.4 76.3 -0.9 pts 75.6 76.1 -0.5 pts Revenue tonne km (RTK) (m)Cargo tonne km (CTK) 431 387 +11.5 4890 4715 +3.7Total RTK 1367 1368 -0.1 16248 16170 +0.5Available tonne km (m) 1863 1926 -3.2 22819 22936 -0.5 Overall load factor (%) 73.3 71.0 +2.3 pts 71.2 70.5 +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. Fuller information onsome factors which could result in material difference to the results isavailable in the company's Annual Report for the year ended 31 March 2007, whichis available on www.bashareholders.com. Investor Relations, Waterside (HAA3), PO Box 365, Harmondsworth, UB7 OGB: Tel:+44 (0) 20 8738 6947 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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