British Airways World Cargo delivers strong financial results for 2004-05 (13/05/2005)

Network expansion and customer confidence boost success

British Airways World Cargo has reported flown revenues of £482.1 million for the financial year ended 31 March 2005, an increase of 4.1% against 2003-04. When the effect of the exchange rate is removed, flown revenues have increased by 11.8%.

Volumes increased by 11.1% to 4,954 million cargo tonne kilometres (CTKs) against an increase in capacity of 4.6%. This resulted in a load factor improvement of 3.6 points. Yield (revenue per CTK) is down 6.2% for the year. However, when the effect of the exchange rate is removed, yield has remained flat at 0.2% down against the last financial year.

Steve Gunning, head of finance, said: "This is a strong set of financial results. We have driven performance by adding capacity with the introduction of a fourth freighter in September 2004 and by realising the full year benefits of capacity added in 2003/2004. By growing volumes through close partnerships with our customers we have increased our load factor and supported yield."

Gareth Kirkwood, managing director, said: "These results are testimony to the hard work that has gone on throughout our organisation as we strive to deliver world-class service for customers. This year we have consolidated our position as a leading, global player in the air cargo industry.

"There's no escaping the fact that industry conditions remain tough. Fuel costs, competition and security issues, amongst others, continue to provide a background of pressure and uncertainty for carriers. However, we are continuing to look for opportunities to invest in and develop our business for the benefit of our customers throughout the world. Our teams across the network are committed to this goal and our performance so far indicates that we are on track.

"We have invested in our business in response to our customers' needs, working to add and optimise capacity in line with their requirements. The growth in volumes and load factor highlights the success of this approach. To support this strategy going forward we'll be working with customers to identify opportunities for enhancing and expanding our product range, a push that has already begun with the launch of our global perishables product, Constant Fresh, in March."