A satisfactory set of revenue results for Q1 (05/08/2005)

British Airways World Cargo has reported flown revenues of £118 million for the first quarter of the financial year beginning April 2005, flat against the first quarter of 2004/2005. When the effect of the exchange rate is removed, flown revenues increased by 2%.

Yield (revenue per Cargo Tonne Kilometre (CTK)) was up 2.7% for the quarter. When the effect of the exchange rate is removed, yield increased 4.3% against the same quarter last year.

Volumes fell by 2.6% to 1,185 million CTKs against an increase in capacity of 1.4%. This resulted in a load factor decline of 2.4 points.

Steve Gunning, head of finance, BA World Cargo said: "This is a satisfactory set of revenue results. The first quarter saw pressure on yields and volumes due to intense competition in many markets and an uncertain global economy. High fuel costs have also impacted our results. Whilst we would have liked to see an increase in volumes, we are pleased that our effort to maintain yield has paid off."

Gareth Kirkwood, managing director, BA World Cargo said: "Maintaining yield is at the centre of our business strategy. It is vitally important to ensure that we are able to continue to invest in our business in the long term, for the benefit of our customers worldwide. This is something we are committed to, as demonstrated by the £15 million investment we are making in a bespoke premium handling facility at Heathrow. As well as being important for our business, supporting yield is critical to the future success of the air cargo industry. Pricing for short term cash and volume returns does not address the long term challenges that cargo carriers are facing."