In August, overall load factor improved by 3.0 points to 69.2 per cent. Passenger capacity, measured in Available Seat Kilometres, was 11.6 per cent below August 2001 while traffic, measured in Revenue Passenger Kilometres, fell by 10.1 per cent. This resulted in a passenger load factor improvement of 1.3 points versus last year, to 76.3 per cent. The decline in traffic comprised a 10.4 per cent decrease in premium traffic and a 10.1 per cent fall in non-premium traffic. Cargo, measured in Cargo Tonne Kilometres, increased by 1.5 per cent.

Market conditions: The overall market outlook remains unchanged.

Costs: Fuel hedging is in place to cover 90% of the requirement to March 2003. The total fuel cost for the 12 months to March 2003 is now expected to be some £150 million less than for the previous year.

Strategic developments: Prices have been reduced by up to 80 per cent on British Airways’ flights to Spain, Turkey, Greece, Cyprus, Belgium, Czech Republic, Hungary and Luxembourg, completing the launch of year-round low fares on 170 key routes to Europe.

British Airways’ winter longhaul sale began with thousands of World Offers to 49 far flung destinations, offering savings of up to £204. The airline can book a range of hotels in conjunction with these flights and there are also discounts of up to 15 per cent on Avis car rental.

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