BA Releases May Traffic Figures
British Airways | Jun. 05, 2007
Summary of Headline Figures
In May 2007, British Airways' passenger capacity, measured in Available Seat Kilometres, was 0.1 per cent below May 2006. Traffic, measured in Revenue Passenger Kilometres, was lower by 2.1 per cent. This resulted in a passenger load factor down 1.5 points versus last year, to 73.3 per cent. The decrease in traffic comprised a 2.1 per cent decrease in premium traffic and a 2.1 per cent decrease in non-premium traffic.
May 2006 was a particularly strong month with premium up 13.9 per cent and non-premium up 5.7 per cent leading to soft year on year performance. The unusual timing of bank holidays in the UK and continental Europe, continuing carry-on baggage restrictions at London Heathrow and the weak US dollar also impacted volumes in May 2007. Premium growth in the first half of the year is unlikely due to high comparative seat factors.
Cargo, measured in Cargo Tonne Kilometres, fell by 2.0 per cent. Overall load factor rose 0.6 points to 69.2 per cent.
Market Conditions
Some weakness in non-premium, particularly on the North Atlantic and in shorthaul domestic, continues. Premium demand is expected to continue driving high seat factors. Visibility around forward bookings continues to be limited.
Revenue and Costs
The continuing weak US dollar, while not helpful to revenue, is having a positive impact on costs.
Strategic Developments
The airline filed an application with the US DoT for permission to operate services between any point in the EU and US to enable it to grow the most profitable part of its business.
Agreement was reached on new working practices for all 6,000 ground staff involved in the move to London Heathrow's Terminal 5. The final ballot, by check-in and customer service staff, showed overwhelming support for more efficient ways of working, ahead of the move to the airline's new home in Terminal 5.
British Airways and Amadeus signed an agreement for the distribution of the airline's fares and inventory to Amadeus travel agencies and corporations. All four GDSs have now agreed to new contracts.
The company joined TPG Capital, Vista Capital, Inversiones Ibersuizas and Quercus Equity to investigate a possible consortium bid for Iberia. No guarantee was given that a formal bid will be made. The airline has previously ruled out further capital investment as part of any consortium bid and will not make an independent bid for the airline.
British Airways' 13 flights a week to Vancouver move from London Heathrow Terminal 4 to Terminal 1 on June 1, 2007, to ease congestion and provide smoother connections for customers.
Eight new Airbus A320 family aircraft were ordered for delivery in 2008-2010 marking the first step towards establishing a single fleet across the British Airways' network. The airline will also upgrade the Gatwick shorthaul fleet by replacing the oldest 14 Boeing 737s with Airbus A319 aircraft.