Investor Update - February 2010
Summary of the headline figures
In February 2010 traffic, measured in Revenue Passenger Kilometres, rose by 1.1 per cent on February 2009. Passenger capacity, measured in Available Seat Kilometres, was down 1.9 per cent. This resulted in a passenger load factor increase of 2.2 points versus last year, to 74.2 per cent. Traffic comprised a 5.0 per cent increase in premium traffic and a 0.3 per cent increase in non-premium traffic. Last year’s February traffic data was affected by significant weather disruption in the first week of the month.
Cargo, measured in Cargo Tonne Kilometres, rose by 9.2 per cent.
Market conditions
Trading conditions are unchanged from the position set down in the Interim Management Statement of February 5, 2010.
Strategic Developments
British Airways received tentative approval from the US Department of Transportation (DOT) for antitrust immunity which would enable it to establish a transatlantic joint business with American Airlines and Iberia. The DOT’s order is a key step in the process towards allowing oneworld alliance members to cooperate more effectively in competing with the Star and SkyTeam alliances, both of which already have transatlantic antitrust immunity. Discussions with the European Union about seeking approval for the transatlantic joint business continue.
The High Court ruled that in the case of Unite vs British Airways the modest changes made to onboard crew cabin numbers on flights from Heathrow were reasonable, did not breach crew contracts and can remain in place. Talks between both parties continue under the auspices of the TUC.
British Airways launched its new First cabin on February 10, on a Boeing 777 aircraft from Heathrow to Chicago. The airline has invested £100 million in its flagship brand drawing on its rich heritage to create an exclusive experience based on classic design and understated luxury.
India’s leading domestic carrier Kingfisher Airlines is lining up to join oneworld, subject to Indian regulatory approval, after signing a memorandum of understanding as its first step towards full membership of the alliance.
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