British Airways mainline scheduled passenger traffic growth, measured in revenue passenger kilometres (RPKs), rose by 1.6 per cent against last year. With mainline scheduled passenger capacity (measured in available seat kilometres - ASKs) growing by 8.7 per cent, this resulted in a 4.6 point decline in passenger load factor to 64.5 per cent, compared against last year`s record level for the month of December.

Premium traffic for the month was up by 0.8 per cent compared against growth in the main cabin of 1.7 per cent.Fare increases continue to lead to favourable yield development significantly offsetting the adverse foreign exchange impact when compared to the first half of the financial year.

Cargo traffic again showed very strong volume growth with cargo tonne kilometres (CTKs) up 14.1 per cent on last year. The overall load factor was down 2.4 points on last year at 65.5 per cent.

For the quarter ended December 31, mainline scheduled RPKs showed growth of 2.8 per cent, with both premium and non-premium traffic also showing growth of 2.8 per cent. UK/Europe traffic growth of 3.9 per cent showed faster growth than longhaul traffic which grew at 2.5 per cent. Mainline scheduled ASKs grew by 8.0 per cent in the quarter resulting in a 3.4 point decline in passenger load factor to 67.8 per cent.

HIGHLIGHTS OF THE MONTH

The International Air Services Commission (IASC) granted approval for British Airways and Qantas to extend their code-sharing arrangements with effect from December 10.

Both airlines` passengers have a choice of 310 flights each week between 18 destinations under the code-sharing arrangements on flights between London and Australia, via Singapore.

British Airways added its code on daily return Qantas flights from London to Singapore, Melbourne, Sydney, Darwin and Cairns; on four weekly return flights from London to Adelaide, and two weekly return flights from London to Brisbane. It also added its code on two weekly return Qantas flights between Sydney and Singapore.

British Airways completed the sale of its Heathrow catering production units to Gate Gourmet, part of the SAir Group. The 1,200 staff in the airline`s catering production operation have transferred to Gate Gourmet.

Due to a fire in the Terminal building, all British Airways UK Domestic and European services to and from Terminal 1 at London Heathrow were cancelled until 15.00 hrs (GMT) on Friday Dec 12.

British Airways welcomed a US judge`s decision to throw out most of the claims made in a lawsuit brought against the airline by US Airways.
Judge Miriam Cedarbaum announced in New York that she was dismissing claims by US Airways that a proposed alliance between British Airways and American Airlines breached anti-trust law.

Additional claims against both companies alleging a failure to act in good faith and a breach of fiduciary duty were also dismissed, along with separate claims against British Airways which alleged further breaches of anti-trust law and breach of fiduciary duty by its directors.
British Airways launched significant promotional campaigns in all major markets running though the fourth quarter of the current financial year.

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