Half Year Revenue Results Announced (03/11/2006)

British Airways World Cargo has reported commercial revenues (flown revenues plus fuel surcharges) of £324 million for the first half of the financial year beginning April 2006, an increase of 7.3 percent against the same period last year. After the impact of exchange rate movements is removed, commercial revenues were up by 7.6 percent.

Overall yields (revenue per cargo tonne kilometre (CTK)), are up by 5.7 percent including exchange effects. After the effects of exchange are removed yields are up 6.0 percent. Volumes have risen by 1.5 percent compared to the same period last year, to 2,403 million CTKs. Capacity measured in cargo available tonne kilometres ATKs has increased by 2.3 percent compared to last year.

Sean Doyle, financial director BA World Cargo, comments: "Although the first half commenced strongly, these are modest results for BA World Cargo, due in part to continued price decline in Europe and UK markets and soft market conditions out of Japan and Korea. Competition in Africa has also put pressure on yields. However, the results reflect growth in volumes on our North Atlantic routes and continued strong demand ex China and the Middle East. Overall capacity increased in the first half of the financial year as a result of additional line flights to India, Hong Kong and Europe.

Gareth Kirkwood, director of operations British Airways, adds: "These results have been achieved in a very challenging first half and the business has done well to increase yield when faced with tough market conditions and the added financial burden of security events outside our control.

"Our strategy of growing our high-yielding premium business has progressed well, with strong premium sales in the lead-up to the September opening of Premia. We will continue to focus on this sector moving forward to differentiate our customer offering and increase our profitable volumes."