Nine month results boosted by strong quarter (04/02/2008)

British Airways World Cargo reported commercial revenue (flown revenue plus fuel surcharges) of £:453.7 million for the nine months of the financial year beginning April 2007. This is a decrease of 0.9 per cent after the effects of exchange rate movements are removed and represents a marked improvement on the six month position where revenues were 5.3 per cent down versus the same period last year.

Cargo capacity measured in available tonne kilometres (ATK) declined by 2.4 per cent compared to the same period last year, although volumes are up by 1.6 per cent to 3,667 million cargo tonne kilometres (CTK).

Overall yield (commercial revenue per CTK) decreased by 2.4 per cent, excluding exchange effects.

Sean Doyle, financial controller, comments: "These are encouraging results. Quarter on quarter we have seen an ongoing improvement with volumes in quarter three, up 5.5 per cent compared to the same time last year. We have also seen a stabilisation in yield due to improved product and destination mix.

"We've experienced a notable volume recovery in the UK market and demand out of the Americas continues to grow, helped by our expanded shorthaul freighter network into Europe. The strong Euro combined with tough conditions means that the market remains challenging in Europe and price pressures continue to be a feature of the market in South Asia."

Steve Gunning, managing director, adds "These results reflect the continued progress in both our operational and commercial performance.

"The price of fuel continues to be a concern which is only partially mitigated by the fuel surcharge. As a consequence, we will remain vigilant in identifying ways of increasing efficiency both internally and with our customers.

"This has been a positive quarter for the business with revenues up 5 per cent, underpinned by a strong operational performance and we are well positioned to continue this volume growth into the fourth quarter."