British Airways announced traffic and capacity statistics

British Airways announced that in December 2008, passenger capacity, measured in Available Seat Kilometres, was 3.0 per cent below December 2007.  Traffic, measured in Revenue Passenger Kilometres, fell by 3.4 per cent.  This resulted in a passenger load factor decrease of 0.2 points versus last year, to 76.7 per cent.  Traffic comprised a 12.1 per cent decrease in premium traffic and a 1.7 per cent fall in non-premium traffic.

Cargo, measured in Cargo Tonne Kilometres, fell by 14.3 per cent.   

Market conditions

Trading conditions remain broadly unchanged, with longhaul premium traffic continuing the trend of recent months and non-premium traffic showing some resilience, helped by travel over the Christmas period. Financial guidance for the year remains unchanged.

Strategic developments

The airline reduced its fuel surcharge on all flights from Thursday, December 18, with the surcharge on some longhaul flights reduced by nearly a third. The move reflected the reduction in the price of oil and the airline's fuel hedging policy for 2009/10.

British Airways announced new catering service contracts at its UK airports for the next ten years from April 1, 2010. Gate Gourmet will continue to provide catering services for longhaul flights from Heathrow. DHL in association with Northern Foods will provide catering services for shorthaul flights from Heathrow. Alpha Flight will continue to provide catering services for flights from London Gatwick and our other airports across UK and Ireland.

British Airways placed firm orders for a fleet of 11 new generation fuel-efficient aircraft for its wholly owned subsidiary BA CityFlyer.  The new Embraer aircraft will fly exclusively from London City Airport, from September 2009, offering passengers unrivalled levels of space and comfort on board.  Firm orders have been placed for six Embraer 170 and five Embraer 190SR efficiency jets, known as E-jets, with options for three more in an investment worth US$376 million, based on current list prices.

British Airways Plc and Qantas Airways Ltd announced that after detailed discussions about a potential merger, talks had ended. British Airways and Qantas will continue to work together on their joint business between the UK and Australia and as part of the oneworld alliance.

The British Airways New Year 'World Offers' sale was launched on December 23, 2008. Offers apply to both shorthaul and longhaul destinations for selected travel dates between January and September 2009.

Source: Transportweekly