5th Sep 2005 14:15
British Airways PLC05 September 2005 TRAFFIC AND CAPACITY STATISTICS - August 2005 Summary of the headline figures In August 2005, passenger capacity, measured in Available Seat Kilometres, was1.1 per cent below August 2004. Traffic, measured in Revenue PassengerKilometres, was lower by 0.7 per cent. This resulted in a passenger load factorup 0.2 points versus last year, to 77.9 per cent. The reduction in trafficcomprised a 4.7 per cent decrease in premium traffic and a 0.2 per cent decreasein non-premium traffic. Cargo, measured in Cargo Tonne Kilometres, fell by 10.2per cent. Overall load factor fell by 2 points at 69.5 per cent. In August2004 operational disruption reduced ASKs by some 1 percent. Industrial actionin August 2005 reduced ASKs by some 4 percent. Market conditions The uncertain economic outlook and volatility in both fuel prices and the USDollar exchange rate, together with the impact of industrial disruption, makeaccurate forecasting even more of a challenge than usual. Market conditions, however, remain broadly unchanged. We continue to expect total revenue for the year to March 2006 to grow in therange of 5.5 to 6.5 per cent. Capacity and volume are still expected toincrease by about 3 per cent with total yield flat. Costs The company now has 81% fuel hedging cover in place at an average cost of $45per barrel for the remainder of the financial year and 40% cover for financialyear 2006/07 at an average cost of $50 per barrel. Strategic Developments British Airways departed no flights from 2pm and suspended all flights into andout of London Heathrow from 6pm on August 11 to 8pm on August 12 as a result ofunofficial industrial action by some of its ground support services staff. Thecargo operations were disrupted for one day longer as the airline focused onrestoring is passenger operations. The unlawful action was taken in support ofemployees dismissed from the airline's Heathrow catering supplier, Gate Gourmet. British Airways agreed the terms of a new deal that improves and extends itscommercial arrangement with Gate Gourmet, which is currently in financialdifficulty. The airline is prepared to sign the deal when Gate Gourmet and theTransport and General Workers Union reach a satisfactory agreement on theiroutstanding labour issues. The airline is not funding the redundancy packagecurrently on offer to Gate Gourmet employees. Although the dispute at Gate Gourmet is not fully resolved the airline isoperating a full schedule and onboard catering has significantly improved with achoice of hot meals now being served on all longhaul departures. British Airways announced the reorganisation of its customer service andoperations department following the retirement of director Mike Street OBE atthe end of September. Geoff Want, currently director of safety and security, becomes director of allground operations in the UK and overseas including the airline's move in 2008 toa single terminal operation in Heathrow's Terminal 5. In a move that aligns product development and delivery, in-flight services willreport to, commercial director Martin George. Robert Boyle, currently directorof commercial planning, will become director planning of a new department thatincludes the airline's operations control and operations planning departments. British Airways launched its biggest ever 'World Offers' winter seat sale withover three million discounted flights available to over 150 destinations fortravel on selected dates between September 2005 and September 2006. For thefirst time many European destinations are being offered with more than 20 percent off some flights. August 5, 2005 BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS Month of August Financial year April through to Aug.BRITISH AIRWAYS Change ChangeSCHEDULED SERVICES 2005 2004 (%) 2005 2004 (%)Passengers carried (000)UK/Europe 2063 2170 -4.9 10432 10712 -2.6Americas 629 646 -2.6 3261 3250 +0.3Asia Pacific 159 144 +10.0 765 677 +12.9Africa and Middle East 249 267 -6.6 1209 1238 -2.3Total 3101 3228 -3.9 15667 15877 -1.3 Revenue passenger km (m)UK/Europe 1972 2028 -2.7 9791 9689 +1.0Americas 4243 4318 -1.7 21885 21704 +0.8Asia Pacific 1631 1476 +10.5 7864 6964 +12.9Africa and Middle East 1656 1751 -5.4 8088 8196 -1.3Total 9502 9573 -0.7 47628 46553 +2.3 Available seat km (m)UK/Europe 2742 2706 +1.4 13777 13304 +3.6Americas 5268 5420 -2.8 26838 26808 +0.1Asia Pacific 2121 2004 +5.8 10439 9695 +7.7Africa and Middle East 2062 2197 -6.1 10603 11069 -4.2Total 12194 12327 -1.1 61657 60877 +1.3 Passenger load factor (%)UK/Europe 71.9 74.9 -3.0 pts 71.1 72.8 -1.7 ptsAmericas 80.5 79.7 +0.8 pts 81.5 81.0 +0.5 ptsAsia Pacific 76.9 73.6 +3.3 pts 75.3 71.8 +3.5 ptsAfrica and Middle East 80.3 79.7 +0.6 pts 76.3 74.0 +2.3 ptsTotal 77.9 77.7 +0.2 pts 77.2 76.5 +0.7 pts Revenue tonne km (RTK) (m)Cargo tonne km (CTK) 365 406 -10.2 1956 2029 -3.6Total RTK 1319 1368 -3.6 6707 6672 +0.5Available tonne km (m) 1897 1912 -0.8 9615 9502 +1.2 Overall load factor (%) 69.5 71.5 -2.0 pts 69.7 70.2 -0.5 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 6947 Fax: +44( 0) 20 8738 9602 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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