British Airways World Cargo announces healthy third quarter results (10/02/2003)

The ongoing business turnaround of British Airways World Cargo continues with reported revenues of £153 million for the three-month period October 1 2002 to December 31 2002.

This shows a 7 per cent increase compared with the same period in 2001. Capacity for the period did not materially change with capacity being 0.6 per cent greater in 2002.

For the nine-month period to December 31 2002, revenues were £436 million, 5.1 per cent up on the same period in 2001.

The airline saw an 11.1 per cent increase in the volume of traffic carried across its network, rising from 998m Cargo Tonne Kilometres (CTKs) in 2001 to 1,109m CTKs in this quarter. Yield per CTK is down 4.1 per cent due to the effect of exchange rates.

British Airways World Cargo reported a continuation in the relatively strong demand from African and Asian markets, with other markets remaining stable.

The airline's cargo division's AEA Market share for the quarter was 14.4 per cent, a 0.8 point increase over the same period in 2001.

Mark Harrison, Financial Controller, British Airways World Cargo said:

"This is a strong performance compared with last year given virtually the same capacity. We have been able to continue with the trend to make revenue gains despite challenging global economic conditions."

Performance gains also came from British Airways World Cargo's consistent operational performance and the ongoing benefits from its product portfolio.

Improvements can also be attributed to the airline's freighter schedule. The schedule allowed the carrier to offer its customers a consistently reliable service and the ability to operate ad hoc services to fulfil specific market opportunities. In quarter three, the airline capitalised on the downtime of its freighters and was able to operate several services from Hong Kong to San Francisco to fill the capacity gap caused by the US port dispute and show the carrier's flexibility to meet its customers' requirements.

Gareth Kirkwood, Managing Director, British Airways World Cargo, stated:

"Our results highlight the successful performance gains we have made since the launch of our new product range and our re-entry into the loose market.

"Our improved performance is also a testimony to the continuing commitment and hard work of my team around the world."