Customer Focus drives Volumes in Quarter Three (09/02/2004)

British Airways World Cargo has announced a significant increase in volumes for its third quarter, it was revealed today. A rise of 9.9 per cent in Cargo Tonne Kilometers year on year was mainly attributed to the expansion of the airline's freighter network in August 2003 to meet its customers' demand. The airline's AEA market share has also increased from 13 to 14 per cent for the period.

Overall, flown revenues increased by 0.6 per cent to £126.5m during the quarter. After removing the effect of exchange, revenues increased by 4.2 per cent compared to the same period last year. The continuing weakness of the dollar against sterling adversely affected revenues in US dollar billed countries.

Volumes from the Pacific and Middle East were particularly strong with a rise of 11 per cent year on year. The airline's focus on routes from Europe and Africa, and UK and Ireland to the Americas also made a strong contribution to the financial performance - volumes from Europe and Africa rose by 11 per cent with the UK and Ireland seeing a 6 per cent increase.

Gareth Kirkwood, Managing Director, British Airways World Cargo, welcomed the result: "We are pleased with our progress in this quarter particularly considering the effects of the continuing devaluation of the US dollar. However, revenues have held up and our customer focus has significantly increased volumes giving grounds for optimism.

Kirkwood warned, "Continuing yield declines mean that all airlines are earning less money. As an industry, more value must be attributed to the role played by the airlines and the risk they carry.

"This year will continue to be challenging both for the airline and the industry, particularly with the ongoing developments in aviation security, but we are clearly in a position to grow."