First quarter results show solid performance in difficult times (01/08/2008)

British Airways World Cargo has reported volumes of 1,237 million cargo tonnes kilometres (CTK) for the first quarter of the financial year beginning April 2008. This is an increase of 4.1 per cent versus last year, against cargo capacity that was down 3 per cent.

Commercial revenues (flown revenue plus fuel surcharges) stand at £178 million, an increase of 22 per cent against the same period last year. After the impact of exchange rate movements is removed, commercial revenues are up 19.3 per cent.

The first quarter of the financial year also saw a 51.2 per cent increase in British Airways' fuel bill versus last year.

Overall yield (commercial revenue per CTK) has increased by 17.3 per cent. Excluding exchange rate effects, yield has increased by 14.6 per cent.

Sean Doyle, financial controller, comments: "Generating a 4 per cent growth in volumes in spite of difficult market conditions is a pleasing achievement for the business. Volume growth aside, the increase in revenue also reflects significantly higher levels of fuel surcharge revenues which only partially offset the impact of unprecedented oil prices on BA's operating profits."

Steve Gunning, managing director, adds: "These are an encouraging set of results. However, with both the price of fuel continuing to be high and consumer demand on the high street uncertain, there are difficult times ahead for carriers. Our focus over the coming months will be on delivering a robust cargo operation for our customers, which in turn will ultimately support the corporate financial goals of British Airways."