British Airways World Cargo Full Year Results April 2009 - March 2010 (21/05/2010)

British Airways World Cargo has reported commercial revenue (flown revenue plus fuel surcharges) of £550.3 million for the full year beginning April 2009. This represents a decrease of 18.2 per cent against the same period last year. Excluding the impact of favourable exchange rate movements, commercial revenues were down 26.1 per cent.

Volumes of 4.5 million cargo tonne kilometres (CTKs) for the full year represent a decrease of 2.2 per cent versus the previous 12 months. Cargo capacity for the same period was down 4.2 per cent. Overall yield (commercial revenue per CTK) decreased by 16.4 per cent versus last year, driven by lower levels of fuel surcharge and underlying market conditions. Excluding the impact of exchange rate movements, yield decreased by 24.5 per cent.

The fourth quarter in comparison saw an increase in revenue of 9.2 per cent compared to the same quarter in the prior year. This quarter benefited from an increase in volumes of 5.8 per cent.

Rachel Izzard, financial controller, BA World Cargo, comments: "Demand for cargo continued to improve in the fourth quarter, following the high unanticipated peak in the third quarter, led by demand for additional capacity out of China and South-East Asian markets. These markets continue to maintain a high level of demand for air freight and our decision to maintain our freighter routes enabled us to build upon this recovery. Demand for our premium products has also remained strong with volumes maintained in spite of the ongoing global economic turbulence.

"While, we experienced some disruption to our schedule as a result of the heavy snow and ongoing industrial action, our innovative response in terms of scheduling solutions and the deployment of our comprehensive trucking network meant that we were able to minimise the impact across the cargo business," adds Rachel Izzard.

Steve Gunning, managing director, BA World Cargo comments: "In order for the recovery that has commenced in the second half to be sustained, we must continue to improve yields. In addition, a full recovery will be dependent on a rational and measured re-introduction of capacity."