Traffic and Capacity Statistics - December 2010

TRAFFIC AND CAPACITY STATISTICS - December 2010

Summary of the headline figures

In December 2010 traffic, measured in Revenue Passenger Kilometres, fell by 8.3 per cent. Passenger capacity, measured in Available Seat Kilometres, was down 7.7 per cent on December 2009. This resulted in a passenger load factor decrease of 0.4 points versus last year, to 76.4 per cent.  Traffic comprised a 1.6 per cent decrease in premium traffic and a 9.6 per cent decrease in non-premium traffic.

Traffic was affected by the weather conditions in the UK, Europe and North America, causing airport closures and reduced operating capacities, equivalent to a reduction in capacity versus December 2009 of around 12 per cent.

Cargo, measured in Cargo Tonne Kilometres, fell by 10.2 per cent.

Impact of disruption

An initial assessment indicates that the weather disruption will have a financial impact in Quarter 3 of some £50m, with some small additional impact in January from cancelled return journeys.

Market conditions

Underlying market conditions remain positive.

Strategic Developments

The Board of British Airways announced the following Board appointments. Non-Executive Director Gavin Patterson, currently Chief Executive BT Retail, will be joining the Board from February 1, 2011. Two Executive Directors will join the Board at the time of the merger: Andrew Crawley, currently Sales and Marketing Director, who will become Director, Commercial and Frank van der Post, who joins the company as Managing Director Brands and Customer Experience.

British Airways increased its fuel surcharge by £10 per sector (£20 return) on all new tickets for longhaul flights purchased from Thursday, December 16. There was no increase to the surcharge on shorthaul flights. The move reflected the recent increase in the price of oil.

From December 20, American Airlines, British Airways and Iberia added another 317 codeshare flights to their trans-Atlantic joint business between North America and Europe. In addition, American Airlines, British Airways and Iberia announced five new routes beginning Spring 2011 as a benefit of the new joint business.

British Airways launched its winter sale on December 23 offering discounts across all cabins to 120 holiday destinations. The sale runs until midnight on January 25, 2011.

The airline announced that from June, passengers will be able to fly direct from London City Airport to Malaga in Spain and Faro in Portugal, also increasing frequency to Amsterdam to six daily flights, Glasgow to five daily flights and Edinburgh to eight daily flights next summer. 

Certain information included in these statements is forward-looking and involves 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 Plan programs, expected future revenues, financing plans and expected 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 itemize 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. Further information on some of the most important risks in this regard is given in the Company's Annual Report and Accounts for the year ended March 31, 2010 and in the shareholder documentation in respect of the merger issued on October 26, 2010; these documents are available on www.bashareholders.com.

Investor Relations, Waterside (HAA3), PO Box 365, Harmondsworth, UB7 OGB: Tel: +44 (0) 20 8738 6947