The first nine days of the month were affected by industrial activity by the Unite union representing cabin crew.  In June 2010 traffic, measured in Revenue Passenger Kilometres, fell by 11.1 per cent.  Passenger capacity, measured in Available Seat Kilometres (ASKs), was down 8.6 per cent on June 2009; the industrial activity accounted for some five per cent reduction in capacity.  This resulted in a passenger load factor decrease of 2.1 points versus last year, to 77.5 per cent.Traffic comprised a 9.2 per cent decrease in premium traffic and an 11.4 per cent decrease in non-premium traffic. 

Cargo, measured in Cargo Tonne Kilometres, rose by 5.4 per cent.

Traffic, and as a result profitability, in the first quarter, has been affected by seven days of volcanic ash in April and 23 days of industrial activity in May and June. Traffic was 14.9 per cent down on quarter one 2009 and capacity, measured in ASKs, was down 11.3 per cent, resulting in a passenger load factor 3.1 points lower than last year.  Although the yields over the period have been stronger year-on-year, reflecting the underlying economic improvement, they have not fully offset the impact of lower volumes.

Market conditions

Underlying market conditions continue to show improvement.

British Airways announced it will recruit new cabin crew. This will enable the airline to deliver a more competitive and flexible cost base. There will be a separate fleet combining longhaul and shorthaul flying with cabin crew on new terms and conditions. It will operate in addition to existing cabin crew fleets.

The airline made a new offer to its cabin crew union Unite which the union has said it will put to its members. The offer includes changes that are intended to address cabin crew concerns about their future earnings, a proposal to increase staffing levels on some flights has been withdrawn. The offer also includes two years of guaranteed rises in basic salary from February 2011 in addition to annual increment pay increases. Cabin crew who are not members of Unite are being invited to accept the offer on an individual basis.

British Airways’ online holiday bookings were up 56 per cent compared to last year. This is due to the introduction of ‘dynamic packaging’ on ba.com, which allows customers to buy flight and hotel or flight and car packages in one easy booking.

The airline will start flights to Mexico’s most important tourist destination with two direct services a week from London Gatwick to Cancun from November 2010.

British Airways has forged a relationship with CitationAir (owned by US aircraft manufacturer Cessna) to provide a new private jet service for British Airways customers who want to fly within the US, southern Canada and the Caribbean. The service allows 'pay-by-the-trip' access to the PrivateConnect network across 85 different private jets. It also means customers can avoid the long-range commitment and hefty up-front fees normally associated with private jet air travel.

This month British Airways welcomed its 50 millionth customer through the doors of Heathrow Terminal 5.