Friday, British Airways plc (BAY, BAY.L,BABWF.PK, BAIRY.PK) posted a 3.8% fall in June traffic. Apart from the challenging economic conditions, June performance metrics reflected the impact of the rapidly spreading A(H1N1) flu. The airline slashed its projected capital spending for 2009 and 2010.
Total passenger load factor for June fell 1.8% to 79.6% from 81.4% in the comparable year-ago period.
June traffic, measured in revenue passenger kilometers, declined 3.8% to 9.93 billion from 10.31 billion in the same period last year.
The airline's passenger capacity, measured in available seat kilometers, decreased 1.7% to 12.47 billion from 12.68 billion last year.
Total passengers carried in June decreased 4.9% to 2.93 million, compared with 3.08 million in the corresponding period last year.
Overall load factor decreased 2.2% year-over-year to 73.4% from 75.6%.
The airline noted that market conditions continued to be very challenging, with trading at levels well below the previous year. British Airways added that on an underlying basis, both premium and non-premium volumes and seat factors have been stable for more than three months.
Adjusting to the difficult operating environment, the company sees capacity for the summer to be down 3.5%, greater than the 2.5% previously anticipated. The company also expects winter capacity to be down 5%, revised from the previously projected decline of 4%.
British Airways said its remaining three mainline Boeing 757 aircraft would be grounded in summer 2010, and a further three Boeing 747-400s in winter 2010.
The company is forecasting capital expenditure for 2009/2010 to be GBP 580 million, lower than the prior forecast of GBP 725 million.
British Airways noted that about 7,000 employees volunteered for its cost-reduction schemes, paving way for nearly GBP 10 million in savings.
BAY.L is currently trading up 7.60 pence or 6.39% at 126.60 pence.
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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.