NEW YORK, Sept. 5, 2006 (PRIMEZONE) -- In August 2006, passenger capacity, measured in Available Seat Kilometers, was 5.1 per cent above August 2005. Traffic, measured in Revenue Passenger Kilometers, was higher by 5.0 per cent. This resulted in a passenger load factor down 0.1 points versus last year, to 77.8 per cent. The increase in traffic comprised a 9.5 per cent increase in premium traffic and a 4.4 per cent increase in non-premium traffic. Cargo, measured in Cargo Ton Kilometers, rose by 3.5 per cent. Overall load factor increased by 2.2 points to 71.7 per cent.
Security Impact
During the period August 10-17 the airline cancelled some 1,280 flights as a result of the disruption at the London airports. The airline estimates that the financial impact for the month of August was around $75 million. This includes lost revenue and increased costs of hotel accommodation, catering and baggage repatriation.
Since the disruption there has been some impact on forward bookings. The overall level of bookings has returned to levels experienced last year, but is still weaker than the trend of the past few months. The recovery of premium and non-premium transfer traffic, for example, is lagging due to the limitations on carry on baggage at London.
Market conditions
Visibility is limited as we emerge from the issues surrounding the August security increases, but underlying market conditions continue to be good.
Strategic Developments
British Airways called on the Office of Fair Trading to refer its study on the UK airports market to the Competition Commission because of its concerns about current airport regulation and ownership.
The airline said separate ownership of London Heathrow and London Stansted airports should be considered because decisions on new runways in South East England should not be concentrated in the hands of one company.
In the event of a break-up of BAA, the airline said there will be a continued need for strong regulation to protect users against monopoly power, particularly at London Heathrow and London Gatwick.
The airline sold its Travel Clinic business to MASTA (Medical Advisory Services for Travellers Abroad) who will become British Airways Preferred Partner for travel health services from this month.
Alan McDonald, British Airways' Director of Engineering, announced his retirement after 40 years at the airline. He will be succeeded by Garry Copeland, currently General Manager Quality and Engineering Services from September 15.
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of August Financial year
April through to Aug.
BRITISH AIRWAYS Change Change
SCHEDULED SERVICES 2006 2005 (%) 2006 2005 (%)
---------------------------------------------------------------------
Passengers carried (000)
UK/Europe 2,045 2,063 -0.9 10,545 10,432 +1.1
Americas 646 629 +2.6 3,429 3261 +5.2
Asia Pacific 164 159 +3.2 799 765 +4.5
Africa and Middle
East 294 249 +17.8 1,419 1,209 +17.4
Total 3,149 3101 +1.5 16,192 15,667 +3.4
Revenue passenger km (m)
UK/Europe 2,014 1,972 +2.1 10,058 9,791 +2.7
Americas 4,357 4,243 +2.7 23102 21,885 +5.6
Asia Pacific 1,668 1,631 +2.3 8,116 7,864 +3.2
Africa and Middle
East 1,938 1,656 +17.0 9,420 8,088 +16.5
Total 9,978 9,502 +5.0 50,697 47,628 +6.4
Available seat km (m)
UK/Europe 2,641 2,742 -3.7 13,386 13,777 -2.8
Americas 5,629 5,268 +6.9 28,225 26,838 +5.2
Asia Pacific 2,095 2,121 -1.2 10,315 10,439 -1.2
Africa and Middle
East 2,457 2,062 +19.1 12,239 10,603 +15.4
Total 12,822 12,194 +5.1 64,165 61,657 +4.1
Passenger load factor (%)
UK/Europe 76.3 71.9 +4.4pts 75.1 71.1 +4.0pts
Americas 77.4 80.5 -3.1pts 81.8 81.5 +0.3pts
Asia Pacific 79.6 76.9 +2.7pts 78.7 75.3 +3.4pts
Africa and Middle
East 78.9 80.3 -1.4pts 77.0 76.3 +0.7pts
Total 77.8 77.9 -0.1pts 79.0 77.2 +1.8pts
Revenue ton km (RTK) (m)
Cargo ton km (CTK) 378 365 +3.5 2,012 1,956 +2.9
Total RTK 1,404 1,319 +6.4 7,094 6,707 +5.8
Available ton
km (m) 1,957 1,897 +3.2 9,906 9,615 +3.0
Overall load
factor (%) 71.7 69.5 +2.2pts 71.6 69.7 +1.9pts
The British Airways logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1862
Certain statements included in this statement may be forward-looking and may involve 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 and financing plans, expected future revenues and 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 itemise 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.