BA Cargo Revenue Hit
British Airways World Cargo reports a drop of 30.9 percent in revenue to $414.33 million for the first half of its financial year beginning April 1 2009.
Overall yield per per cargo tonne-kilometer (CTK) dropped 37.2 percent compared to the same period in 2008 as a result of price pressures and lower fuel surcharges. Traffic fell 8.1 percent for the half year versus 2008 prompted by an 11.5 percent decrease in the first quarter that improved to minus 4.9 percent in the second three months. Since April, cargo capacity has been reduced by 6.5 percent.
Steve Gunning, managing director, BA World Cargo said, “Whilst it has been a difficult six months, we are encouraged that we continue to outperform the market, and in the last quarter we have seen signs that the market is beginning to improve. We have taken aggressive steps to reduce costs and this has included reducing capacity. Looking ahead, we’re focused on continuing to drive yields back up to sustainable levels and delivering consistent customer service.”
Rachel Izzard, financial controller, BA World Cargo added, "We’re seeing equilibrium restored to some markets such as Asia Pacific, where capacity has been reduced to such a level that it is now in line with demand.”
