Airline Traffic Still Declining – British Airways To Cut Capacity
Recall the article I wrote on June 16 ‘Travel The World For One Month Free‘ where British Airways asked employees if they would work 4 weeks without pay. As air travel passenger loads continue to decline worldwide British Airways is now having to go one step further.
LONDON — U.K. flag carrier British Airways PLC Friday reported another month of annual declines in passenger traffic, prompting the company to further reduce summer and winter capacity.
The company also said it expects delays in deliveries of A380 aircraft and that it plans to shed the equivalent of up to 3,700 jobs this financial year.
British Airways said it will reduce capacity from April to October by 3.5%, compared with the planned 2.5%, and will cut its winter schedule by 5%, originally planned as a 4% reduction.
In addition, it said it expects a five-month delay in the delivery of its first six Airbus A380 aircraft, due in 2012. The delivery of the remaining six A380s will be delayed by two years, arriving in 2016.
The company said it expects capital expenditure to be down to £580 million ($951 million) for the financial year ending March 31, 2010, from its original £725 million target.
Traffic measured in revenue passenger kilometers, or RPKs, in June fell 3.8% from a year earlier to 9.93 billion RPKs, with total passenger numbers down 4.9% at 2.9 million. Premium traffic dropped 14.9% , with non-premium traffic off by 1.3%, BA said.
BA’s passenger load factor, an indicator of how many seats an airline fills with paying passengers, fell 1.8 percentage points to 79.6%. (Source: WSJ)
Other Recent Airline traffic reports:
Qantas Airways Ltd: May passenger traffic -2.8% y/y
Grupo Ferrovial, S.A.: Updates 5-month traffic trends: Heathrow -4% y/y, Gatwick -10.3% y/y, Stansted -15.1% y/y
IATA: May International Air Passenger Traffic -9.3% y/y, Air Freight Traffic -17.4% y/y- May airline passenger load factor was 71.2% v 74.5% y/y
- May airline passenger capacity was cut by -5%
McCarren Intl Airport (Las Vegas) passenger traffic in May fell -11.5% y/y
- US Airways traffic -30.6% y/y
- United Airlines traffic -16.6% y/y
- Southwest Airlines -4.6% y/y
- American Airlines +3.5% y/y
- Cargo 75.4K tons v 77K m/m
- Revenue Passenger Kilometers 4.8B v 5.2B m/m
- May passenger volume -5.1% y/y
- International traffic -52.7% y/y
- Passenger traffic -18.1% y/y
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