Summary of the headline figures
Capacity in August, measured in Available Seat Kilometres, was 8.7 per cent below August 2000. Traffic, measured in Revenue Passenger Kilometres, fell 10.8 per cent. The reduction in traffic comprised an 11.6 per cent decline in premium traffic and a 10.7 per cent fall in non-premium traffic. Passenger load factor of 75.4 per cent was down 1.8 points on August 2000. Cargo, measured in Cargo Tonne Kilometres, fell by 16.0 per cent.

Market conditions
Both market conditions and traffic levels in August were similar to those seen in July, as the global economic slowdown continued. Business travel volumes remain weak but market share gains continue.

Costs
Yesterday, British Airways updated its staff on ongoing and further measures to improve profitability in both the current and forthcoming years. These actions include accelerating the standing-down of five Boeing 747-200 aircraft, headcount reduction across the airline of 1800 in the current financial year and other significant cost reduction measures.

Strategic developments
British Airways and American Airlines filed applications for anti-trust immunity in the United States for their planned profit sharing arrangement on nine transatlantic routes. The competition authorities in London, Brussels and the United States have now begun their formal regulatory processes into the deal.

British Airways and Birmingham based airline Maersk Air Ltd renewed their franchise agreement. Maersk Air Ltd has been flying in the colours of British Airways since 1993. The new contract extends the arrangement for a further five years.

British Airways announced it will increase the number of flights each weekday between Southampton and Jersey, following demand for more services from travellers. British Airways’ wholly owned subsidiary, British Regional Airlines, will add an extra flight each weekday from October 28th. Also from October 28th, British Regional Airlines will introduce services between London Gatwick and Leeds/Bradford Airport.

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