British Airways plc (BAY, BAY.L, BAIRY.PK) on Monday reported a 0.8% decline in traffic for September, as capacity fell 3.7%, resulting in an increase in load factor for the month. The airline noted that market conditions in September remained unchanged, with yields under pressure from the year-over-year impact of lower fuel surcharges, exchange movements and mix.
Traffic, measured in revenue passenger kilometers, fell 0.8% to 9.83 billion from 9.91 billion in the same period last year. Traffic comprised a 7.9% decrease in premium traffic and a 0.7% increase in non-premium traffic.
The company noted that Premium traffic comparisons are starting to be against a weaker base, with the bankruptcy of Lehman Brothers occurring mid-way through September 2008. The carrier has been particularly hard hit by the economic downturn because of its reliance on transatlantic premium traffic, which has fallen as companies cut costs.
Passenger capacity, measured in available seat kilometers, declined 3.7% to 12.09 billion from 12.55 billion in the prior-year period. The company's passenger load factor rose 2.4 points to 81.3% compared with 78.9% in the corresponding period last year. Load factor measures the proportion of available seats an airline fills with paying passengers. Overall load factor was 75.9%, up by 2.4 points from 73.5% in the year-ago period.
Total passengers carried during the month were 2.92 million, down 1.7% from 2.97 million in the year ago period.
Cargo, measured in Cargo Tonne Kilometres, fell by 2.6%.
For the financial year-to-date period from April to September 2009, traffic, measured in revenue passenger kilometers, declined 1.6% to 59.99 billion from 60.97 billion in the same period last year.
Passenger capacity for the year-to-date period, measured in available seat kilometers, declined 3.0% to 74.40 billion from 76.73 billion in the prior-year period. The company's passenger load factor rose 1.1 points to 80.6% compared with 79.5% in the corresponding period last year. Overall load factor was 74.3%, up by 0.4 points from 73.9% in the year-ago period.
Total passengers carried during the year-to-date period was 17.74 million, down 2.6% from the prior-year period.
British Airways also said it launched the first ever long haul flight from London City airport, an exclusive, all-business service to New York on a 32-seater Airbus A318. The airline said that customers on the new service will be able to send emails, texts and use the internet on transatlantic flights via an in-flight mobile communications service.
The International Air Transport Association, or IATA, said in late September that while traffic volumes in the industry are improving, costs were rising due to reduced aircraft utilization as well as rising oil prices, and profitability remained distant.
IATA also revised its global financial forecast, predicting airline losses to total $11 billion in 2009. This is $2 billion worse than the previously projected loss of $9 billion due to rising fuel prices and exceptionally weak yields. Industry revenues for the year are expected to fall by $80 billion, or 15%, to $455 billion compared with 2008 levels.
In order to boost revenue and cut costs, British Airways has taken a series of measures, including grounding planes, slashing thousands of jobs and asking staff to take pay and bonus holidays. The company's other plans include scrapping meals in economy class on short-haul flights to save some 22 million pounds each year and new advertising plans.
Last week, media reports said that an agreement between British Airways, American Airlines (AMR) and the Spanish carrier Iberia to co-operate on ticket prices and transatlantic schedules was being investigated by European competition regulators who said the pact may breach anti-trust laws.
The airlines, who are members of the Oneworld alliance, had planned to deepen the pact to take advantage of the U.S./European Union "Open Skies" agreement, with the focus on routes between the U.S., Mexico, Canada, the EU, Norway and Switzerland, but European Union regulators said the latest plan may violate antitrust rules on restrictive business practices.
Since April, European Union regulators have also been investigating similar deals between the 24 members of the rival Star Alliance as well as the SkyTeam partnership of eleven airlines.
In September, reports surfaced that British Airways and American Airlines, a subsidiary of AMR Corp. (AMR), are wooing cash-strapped Japan Airlines Corp.(JALSY.PK) with an offer to recapitalize Asia's largest airline and retain it in their Oneworld airline alliance. British Airways in mid-September confirmed it is in talks with Japan Airlines.
In Monday's regular trading on the LSE, BAY.L is trading at 214.40 pence, up 4.10 pence or 1.95% on a volume of 6.95 million shares. In the past 52 weeks, the stock has been trading in a range of 105.40-243.30 pence. BAIRY.PK is currently trading at $34.29, up $0.58 or 1.72% on a volume of 200 shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.