5th Aug 2005 07:00
British Airways PLC05 August 2005 TRAFFIC AND CAPACITY STATISTICS - July 2005 Summary of the headline figures In July 2005, passenger capacity, measured in Available Seat Kilometres, was 2.4per cent above July 2004. Traffic, measured in Revenue Passenger Kilometres,was higher by 4.2 per cent. This resulted in a passenger load factor up 1.4points versus last year, to 81.1 per cent, a record for July. The increase intraffic comprised a 6.8 per cent increase in premium traffic and a 3.8 per centincrease in non-premium traffic. Cargo, measured in Cargo Tonne Kilometres,fell by 3 per cent. Overall load factor fell by 0.1 points at 72.5 per cent. Market conditions Record passenger loads in July indicate that the short term impact of the Londonbombings was not material although it is too early to say what the long termimpact will be. When taken together with the uncertain economic outlook andvolatility in both fuel prices and the US Dollar exchange rate, accurateforecasting is even more of a challenge than usual. Market conditions, however, remain broadly unchanged. The continuing strength of the US Dollar and increased surcharges have improvedthe revenue outlook. We now expect total revenue for the year to March 2006 togrow by 5.5 to 6.5 per cent. Capacity and volume are still expected to increaseby about 3 per cent with total yield flat. Costs We now expect fuel costs, net of hedging, to be about £525 million higher thanlast year. The company now has 75% hedging cover in place at an average cost of$43 per barrel for the remainder of the financial year and 40% cover forfinancial year 2006/07 at an average cost of $50 per barrel. Strategic Developments British Airways released financial information prepared under InternationalFinancial Reporting Standards (IFRS) for the year ended March 31, 2005. UnderIFRS, the airline's operating profit for the year ended March 31, 2005 increasedfrom £540 million under UK GAAP to £556 million and profit before tax increasedfrom £415 million to £513 million. The adoption of IFRS represented anaccounting change only and did not affect the underlying operation of thebusiness or the airline's cash flows for 2004/5. At the airline's 2005 annual general meeting chief executive designate WillieWalsh, commercial director Martin George, Ken Smart, Denise Kingsmill andBaroness Symons were elected onto the British Airways Board. Stepping down wereformer flight operations director Captain Mike Jeffery, Dr Ashok Ganguly andLord Renwick of Clifton, in line with corporate governance guidelines onindependence. The meeting included a farewell to Lord King of Wartnaby, BritishAirways president emeritus and former chairman, who died on Tuesday July 12. British Airways' Corporate Responsibility Report for 2004 - 2005 was publishedand included details of the airline's double Gold Standard for its diversityprogramme, a first time award from Race for Opportunity for its work on racialequality across the company and a renewed award from Opportunity Now for genderequality. The company launched a new online shopping basket facility on ba.com thatenables customers to pay for hotels, car-hire, resort transfers and sightseeingtours as well as flights in a single transaction. British Airways launched a seat sale offering thousands of discounted flights onover 80 routes for travel until November. Longhaul prices start from £299 for areturn flight to New York and shorthaul from £65 for return tickets to Bologna,Turin, Seville and Amsterdam. ends August 5, 2005 076/CW/05 BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS Month of July Financial year April through to JulyBRITISH AIRWAYS Change ChangeSCHEDULED SERVICES 2005 2004 (%) 2005 2004 (%)Passengers carried (000)UK/Europe 2280 2311 -1.3 8367 8541 -2.0Americas 693 683 +1.4 2630 2603 +1.0Asia Pacific 176 148 +18.4 606 533 +13.7Africa and Middle East 259 263 -1.7 959 971 -1.2Total 3408 3406 +0.1 12562 12648 -0.7 Revenue passenger km (m)UK/Europe 2157 2112 +2.1 7817 7661 +2.0Americas 4671 4577 +2.0 17635 17384 +1.4Asia Pacific 1806 1521 +18.7 6233 5489 +13.6Africa and Middle East 1735 1742 -0.4 6428 6444 -0.2Total 10369 9952 +4.2 38113 36978 +3.1 Available seat km (m)UK/Europe 2826 2757 +2.5 11033 10599 +4.1Americas 5552 5471 +1.5 21569 21387 +0.8Asia Pacific 2234 2004 +11.5 8318 7691 +8.1Africa and Middle East 2174 2248 -3.3 8539 8872 -3.8Total 12786 12481 +2.4 49458 48549 +1.9 Passenger load factor (%)UK/Europe 76.3 76.6 -0.3 pts 70.8 72.3 -1.5 ptsAmericas 84.1 83.7 +0.4 pts 81.8 81.3 +0.5 ptsAsia Pacific 80.8 75.9 +4.9 pts 74.9 71.4 +3.5 ptsAfrica and Middle East 79.8 77.5 +2.3 pts 75.3 72.6 +2.7 ptsTotal 81.1 79.7 +1.4 pts 77.1 76.2 +0.9 pts Revenue tonne km (RTK) (m)Cargo tonne km (CTK) 406 419 -3.0 1591 1630 -2.4Total RTK 1440 1413 +1.9 5386 5312 +1.4Available tonne km (m) 1985 1946 +2.0 7710 7588 +1.6 Overall load factor (%) 72.5 72.6 -0.1 pts 69.9 70.0 -0.1 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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