Traffic And Capacity Statistics - July 2000

Summary of the headline figures
Traffic and capacity continued the trend seen in recent months. Capacity, measured in Available Seat Kilometres, fell by 1.5 per cent in July. Traffic, measured in Revenue Passenger Kilometres, grew by 0.6 per cent comprising a 7.8 per cent growth in premium traffic and a 0.4 per cent decline in non-premium traffic. Passenger load factor rose 1.6 points to 78.4 per cent. Mainline load factor rose in all regions and this is the highest total mainline monthly load factor since August 1996.

Market conditions
The revenue outlook for the key summer season continues to give cause for cautious optimism with lower capacity growth in the market supporting yields and seat factors.

The dominant cost feature continues to be the fuel price. The impact of rising fuel prices has been to increase first quarter fuel costs, net of hedging, by some £75 million compared with the equivalent period last year.

Strategic developments
Talks between British Airways and KLM on a possible combination of their businesses are continuing. Neither company will be making any public comment on this matter until there is something material to announce.

British Airways completed the embodiment of its 747 fleet for the London Heathrow - New York JFK route with the new Club World flat beds. Embodiment of these aircraft with the new World Traveller Plus product is now underway. The next route on which the flat beds are being installed is London Heathrow - Hong Kong.


British Airways launched a trial to offer on-line check-in for its top corporate customers. Selected companies have started to trial the new system via their British Airways extranet. The system allows customers to check in and select seats from home or the office up to 24 hours before departure. If the trial is successful, the service will be offered to the top 200 corporate customers by the end of March 2001.

British Airways relaunched its Executive Club, with an enhanced range of benefits for its members. With effect from October 1, BA Miles will replace AirMiles as the mileage currency for UK Executive Club members. Members will be able to earn miles on discount economy fares for the first time and and mid and longhaul destinations will be easier to reach. BA Miles, through the Executive Club, will focus on rewarding anyone who flies with British Airways, while AirMiles will continue as the UK’s leading frequent shopping reward scheme.

British Airways subsidiary, CityFlyer Express confirmed an order for six new Avro RJ100 jets, together with options for six more. The aircraft will be used to upgrade selected routes currently operated by ATR aircraft, as well as introducing some new routes on to the CityFlyer network. Delivery of the aircraft is scheduled from November 2000 through to April 2001.