In November 2009, passenger capacity, measured in Available Seat Kilometres, was 6.2 per cent below November 2008.  Traffic, measured in Revenue Passenger Kilometres, fell by 4.3 per cent.  This resulted in a passenger load factor increase of 1.5 points versus last year, to 75.9 per cent.  Traffic comprised a 1.7 per cent decrease in premium traffic and a 4.8 per cent decrease in non-premium traffic.  Within the premium cabins the trend highlighted at the half-year results continued in November with Club World traffic up 1.5 per cent and Club Europe down 20 per cent on last year.

Cargo, measured in Cargo Tonne Kilometres, rose by 2.4 per cent. 

Market conditions

Volumes and yields in non-premium and shorthaul premium are stable.  However, longhaul premium is showing signs of improvement with volumes above the levels of last year and yields improving.

 

Strategic Developments

British Airways’ and Iberia’s boards agreed to a binding memorandum of understanding setting out the basis for a proposed merger of equals between the two airlines.  The holding company will have its primary listing and headquarters in London and will be registered in Spain.  British Airways and Iberia will continue as separate operating companies and maintain their individual brands.  The merger will create a stronger business that will benefit customers, shareholders and staff, with revenue and cost synergies worth €400m a year after five years.  The group chairman will be Antonio Vazquez and the group chief executive will be Willie Walsh.