4th Oct 2006 14:15
British Airways PLC04 October 2006 TRAFFIC AND CAPACITY STATISTICS - September 2006 Summary of the headline figures In September 2006, passenger capacity, measured in Available Seat Kilometres,was 2.5 per cent above September 2005. Traffic, measured in Revenue PassengerKilometres, was higher by 1.5 per cent. This resulted in a passenger loadfactor down 0.8 points versus last year, to 78.8 per cent. The increase intraffic comprised a 1.5 per cent increase in premium traffic and a 1.5 per centincrease in non-premium traffic. Cargo, measured in Cargo Tonne Kilometres,decreased by 5.2 per cent. Overall load factor increased by 0.8 points to 73per cent. For the July to September quarter, ASKs rose by 3.5 per cent, with RPKs risingby 3.6 per cent. This resulted in an increase in passenger load factor of 0.1points, to 79.7 per cent. This comprised a 6.5 per cent increase in premiumtraffic and a 3.1 per cent increase in non-premium traffic. CTKs fell by 1.1per cent. Market conditions Market conditions continue to be good, and most segments of the business arerecovering well from the events of August. However, as expected, Septembertransfer traffic volumes, in particular in the premium cabins, were affected bycarry on baggage restrictions. Volume in premium shorthaul also continues to besoft for the same reason. The reintroduction of standard carry on bag sizesagreed at the end of the month, and harmonization of rules on liquids plannedfor the end of October are expected to support the gradual recovery of thesesegments of the business. As a result of the volume shortfall total revenue isnow expected to grow at 5-6% for the financial year, down from 6-7%. Costs After the recent major falls in the fuel price the cost of fuel is now expectedto be some £450 million higher than last year, down from our previous forecastof £550-600 million. Strategic Developments The airline announced that the actuarial deficit in its New Airways PensionScheme (NAPS) is set to rise from £928 million to some £2.1 billion, despite adoubling of BA's contributions and a recovery of the stock market. The trusteesconfirmed that annual contributions at the unsustainable level of £497 millionwould be needed to fund the scheme unless changes to future benefits proposedearlier this year are introduced. This means the company's contributions wouldgo up from five to 12 times members' contributions. Negotiations between British Airways and the trustees are now underway to agreea funding plan including proposed benefit changes. Consultation continues withthe trades unions. British Airways urged the Civil Aviation Authority to cut the profits BAAreceives from its asset base to ensure that the airport operator buildscost-effective facilities that generate additional airport capacity. The CAA iscurrently consulting on the level of user charges at Heathrow, Gatwick andStansted airports for a five year period from April 2008, in its role as aneconomic regulator. During the current charging period between April 2003 and March 2008, BAAreceives a 7.75 per cent return on it asset base. British Airways said thisshould be set at around 5.6 per cent in the next charging period, a reduction ofalmost one third. It was announced that James A Lawrence will be joining the board as anon-executive director with effect from 1 November, 2006. He is currently vicechairman and chief financial officer of General Mills Inc. one of the largestfood companies in North America. His range of experience covers strategicconsultancy, leading US multi-nationals in consumer products and the US airlineindustry. ends October 4, 2006 102/KG/06 BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS Month of September Financial year April through to SepBRITISH AIRWAYS Change ChangeSCHEDULED SERVICES 2006 2005 (%) 2006 2005 (%)Passengers carried (000)UK/Europe 2156 2132 +1.1 12701 12566 +1.1Americas 639 648 -1.3 4068 3910 +4.0Asia Pacific 166 173 -4.1 965 938 +2.9Africa and Middle East 285 257 +11.0 1704 1466 +16.3Total 3246 3210 +1.1 19439 18880 +3.0 Revenue passenger km (m)UK/Europe 2070 2005 +3.2 12128 11797 +2.8Americas 4316 4354 -0.9 27418 26252 +4.4Asia Pacific 1701 1776 -4.2 9817 9642 +1.8Africa and Middle East 1910 1714 +11.4 11331 9805 +15.6Total 9997 9850 +1.5 60694 57496 +5.6 Available seat km (m)UK/Europe 2652 2738 -3.1 16039 16515 -2.9Americas 5599 5342 +4.8 33824 32193 +5.1Asia Pacific 2030 2169 -6.4 12344 12611 -2.1Africa and Middle East 2403 2122 +13.2 14642 12727 +15.0Total 12683 12372 +2.5 76849 74047 +3.8 Passenger load factor (%)UK/Europe 78.0 73.2 +4.8 pts 75.6 71.4 +4.2 ptsAmericas 77.1 81.5 -4.4 pts 81.1 81.5 -0.4 ptsAsia Pacific 83.8 81.9 +1.9 pts 79.5 76.5 +3.0 ptsAfrica and Middle East 79.5 80.8 -1.3 pts 77.4 77.0 +0.4 ptsTotal 78.8 79.6 -0.8 pts 79.0 77.6 +1.4 pts Revenue tonne km (RTK) (m)Cargo tonne km (CTK) 392 414 -5.2 2401 2370 +1.3Total RTK 1417 1397 +1.4 8507 8105 +5.0Available tonne km (m) 1941 1934 +0.4 11850 11557 +2.5 Overall load factor (%) 73.0 72.2 +0.8 pts 71.8 70.1 +1.7 pts Certain statements included in this statement may be forward-looking and mayinvolve risks and uncertainties that could cause actual results to differmaterially from 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 and financing plans, expected future revenues andexpenditures and divestments. All forward-looking statements in this report arebased upon information known to the company on the date of this report. Thecompany 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 itemise 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. 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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