British Airways World Cargo sees Progress in Flat Market (10/11/2003 )

British Airways World Cargo (BAWC) has reported flown revenues of £275m in its results for the first six months of the financial year 2003-2004. This represents a fall of 2.7 per cent compared to the same period last year and is largely the result of exchange rate fluctuations.

BAWC said that after removing the effect of exchange rate movements year on year, flown revenue (Freight, Courier, Mail and Interline) for the six months fell by only 0.3 per cent.

The volume of cargo traffic carried across the airline's international network declined marginally by 0.6 per cent, to 2,091m Cargo Tonne Kilometres (CTKs). The airline also reported that load factors, including freighters, dipped slightly to 56.4 per cent, a decrease of 0.3 per cent over the same period last year.

Despite the difficulties encountered in the first half of the year, BAWC slightly improved its market share to 14.2% (AEA figures).

BAWC said the Half Year had been impacted by tough trading conditions in the European market, disruption in its Heathrow Ascentis hub and the impact of British Airways' industrial action. Additionally, the carrier was affected by SARS and the war in Iraq in Quarter 1.

BAWC pointed to a number of key initiatives it had taken which would generate better quality business and revenues in subsequent quarters, particularly with the expansion of its freighter programme with the addition of a third freighter to its network in August.

Gareth Kirkwood, Managing Director, BAWC, said: "The last six months have been a difficult time for the international air transport industry and for British Airways World Cargo.

"However, we have come through this period because of the focus of our global team to provide customers with quality service and airfreight solutions that are tailor-made to their needs. I believe our business is now poised for growth."

Mark Harrison, Financial Controller, BAWC, said he was optimistic about future trading results because of business initiatives being launched by BAWC.

He said the introduction of a new capacity management system would maximise tonnage and yield on its network and the airline had recently (October 2003) introduced a new short-haul European freighter programme that provides its customers with 20 services per week between London and key European hubs.

Mr Harrison said: "Building upon the successful launch of our third freighter, the European freighter programme is a key example of our commitment to customers which in turn will generate better quality business to improve our financial performance."