Q1 commercial revenue results reported (04/08/2006)

British Airways World Cargo has reported commercial revenues (flown revenues plus fuel surcharges) of £164 million for the first quarter, an improvement of 11.6 percent on the previous year. After the impact of exchange rate movements is removed, commercial revenues were up by 9.6 percent.

Overall yields (revenue per cargo tonne kilometre (CTK)), are up by 5.3 percent excluding exchange effects. Volumes have risen by 4.1per cent compared to the same quarter last year, to 1,233 million CTKs. Capacity measured in available tonne kilometres (ATK) has risen by 4.8 per cent compared to last year. British Airways fuel costs have risen by 42 per cent in the quarter.

Sean Doyle, Financial Controller BA World Cargo, comments: "Costs have risen significantly due to higher fuel prices and additional freighter costs related to the expanded European shorthaul freighter programme. We have gained significant capacity from additional line flights to India, Hong Kong and Peking and European destinations but lost some with the cessation of Melbourne flights at the start of the 2006 summer season.

"Although overall yields have risen, competition has put underlying flown yields under further pressure in Africa and India. In terms of volume, dense, ad hoc shipments to the Americas and the Far East have significantly increased out of the UK, but overcapacity in that market has driven down yields."

Gareth Kirkwood, Managing Director BA World Cargo, adds: "It has been a tough start to the year with overall prices continuing to decline which has been mitigated by the growth in premium products sales.

"The high cost of fuel remains a major challenge, and consequently it is essential that we continue to grow profitable volumes going forward. In particular we are maintaining a continued focus on premium sales in the run up to the opening of Premia in September."