Full year results show strong performance (15/05/2008)

British Airways World Cargo has reported commercial revenues (flown revenue plus fuel surcharges) of £615.7 million for the full financial year beginning April 2007, an increase of 3 per cent against the same period last year. After the impact of exchange rate movements is removed commercial revenues are up 4.7 per cent.

Full year volumes rose to 4,891 million cargo tonne kilometres (CTKs), up 4.2 per cent versus last year, against cargo capacity that was down 3 per cent.

Overall yield (commercial revenue per CTK) has decreased by 1.2 per cent. Excluding exchange rate effects, yield has increased by 0.6 per cent. This slight increase in yield is due to an improved premium product mix and increased fuel surcharges largely offset by a decrease in underlying freight rates.

Sean Doyle, financial controller, comments: "These are strong full year results, which reflect the continued recovery in our business throughout the year. This recovery has been built on improved operational performance and this will continue to be our principal area of focus."

Steve Gunning, managing director, adds: "I want to give credit to the people in BA World Cargo for the turnaround we have seen over the last year. At the end of the first half we reported volumes down by 1.5 per cent. To finish the full year up 4.2 per cent demonstrates the progress we have made."

"These are strong results, but we are under no illusions that the outlook is very challenging, especially given the trends in the fuel price, which is putting huge pressure on our business, and the global economy."