BA posts strong performance but fuel hike hurts

INCREASES IN volumes have led to a strong performance for British Airways World Cargo (BAWC). In the period to September 30, the airline saw an increase of 15% in cargo tonne kilometres to 2 419m. Flown revenues have also risen to £235.8m (R2.6bn), an improvement of 5.4% in comparison to the same period last year. The increase in revenues shows an even sharper rise of 14.2% when the impact of the exchange rate is removed. The strong showing from a revenue and capacity perspective has however been significantly affected by yield challenges, according to BAWC MD Gareth Kirkwood. Rising fuel prices have been partially countered by the increased fuel surcharge but yield continues to have a negative impact, he said. “Global market conditions remain tough, with the UK market as a whole witnessing an 8% year on year decline in yield.