FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Report of Foreign Issuer
Furnished Pursuant to Rule 13a - 16 or 15d - 16 of the
Securities Exchange Act of 1934
For the period ending 3 April 2003
BRITISH AIRWAYS Plc
Waterside HBA3, PO Box 365, Harmondsworth UB7 0GB
CONTENTS
1. March Traffic and Capacity Statistics
3 April 2003
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorised.
BRITISH AIRWAYS Plc
Date: 3 April 2003
Sarah BillingtonManager
Shareholder Services
TRAFFIC AND CAPACITY STATISTICS - March 2003
Summary of the headline figures
In March 2003, overall load factor fell 4.2 points to 65.4 per cent. Passenger capacity,
measured in Available Seat Kilometres, was 3.1 per cent below March 2002 and traffic,
measured in Revenue Passenger Kilometres, was lower by 11.4 per cent. This resulted in a
passenger load factor down 6.6 points versus last year, to 69.2 per cent. The fall in
traffic comprised a 23.8 per cent reduction in premium traffic and a 9.2 per cent decrease
in non-premium traffic. These numbers were impacted by the timing of Easter versus last
year. Cargo, measured in Cargo Tonne Kilometres, fell by 4.0 per cent.
For the January - March quarter, ASKs reduced by 3.1 per cent, with RPKs falling by 6.5
per cent. This resulted in a decrease in passenger load factor of 2.5 points, to 69.5
points. This comprised a 15.7 per cent fall in premium traffic and 4.8 per cent fall in
non-premium traffic. CTKs fell by 1.1 per cent.
Market conditions
Revenue and forward bookings have been impacted by the threat and outbreak of war with
Iraq. The reductions are in line with company expectations. There is currently limited
forward visibility on revenue and traffic reflecting the war, economic uncertainty,
competitor activity and the impact of SARS. The latter has already affected bookings, in
particular, on Far East routes.
Costs
As a result of Yen appreciation against sterling, there will be a non-cash accounting
charge of £18 million in the fourth quarter financial results. Fuel costs for the
financial year ending 31 March 2004 are still expected to be approximately £100
million higher than for the year ended 31 March 2003. The company is currently some 70%
hedged in quarter one and some 45% hedged in quarter two.
Strategic Developments
British Airways announced a package of measures in response to the impact on its business
of the conflict in Iraq. Following the actual and anticipated downturn in passenger
traffic, the airline implemented a reduced flying programme and an acceleration of its
Future Size and Shape restructuring programme. The measures include:
- An overall capacity reduction of four per cent in April and May, involving reduced
frequencies and the use of smaller aircraft.
- The Future Size and Shape programmes overall manpower reduction target of 13,000 by
March 2004 accelerated to September this year.
- An extension of the companys unpaid leave scheme for staff.
- A review of all capital expenditure and external spend.
British Airways announced the suspension of its daily service between London Heathrow and
Kuwait, until further notice, from March 19, following Foreign and Commonwealth Office
travel advice. In addition, only one flight a day is being operated to Tel Aviv instead of
the usual twice daily schedule.
British Airways re-launched its Executive Club loyalty programme to make the scheme
simpler, with more ways to spend BA Miles and better incentives for loyal customers to
take effect from July 1, 2003.
Easyjet notified British Airways that it will not exercise the option to buy its German
subsidiary, dba (formally Deutsche BA). EasyJet has paid the airline £6.1 million
during the purchase option period. The company will continue to work towards the long term
future of dba and it remains business as usual for customers and staff. British Airways
will continue to develop dba as a no-frills carrier.
British Airways and SN Brussels Airlines received approval from the European Commission to
continue their commercial relationship agreed in July 2002. It enables the two airlines to
codeshare on selected flights and offer reciprocal frequent flyer benefits for customers.
To date, the airlines now codeshare on six routes in Europe. SN Brussels puts its code on
British Airways operated services between London Heathrow, London Gatwick, Southampton and
Brussels. At the same time, British Airways applies its code to SN Brussels operated
services between Birmingham, Newcastle, Bristol and Brussels.
April 3, 2003
BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
Month of March
Financial year to date
April through March
BRITISH AIRWAYS GROUP
Change
Change
SCHEDULED SERVICES 2003 2002 (%)
2002/3 2001/2
(%)
Passengers carried (000)
UK/Europe 2110 2185 -3.4
26632 27351
-2.6
Americas 548 589 -6.9
6672 6681
-0.1
Asia Pacific 120 162 -25.6
1552 1786
-13.1
Africa and Middle East 199 235 -15.1
2568 2774
-7.4
Total 2978 3171 -6.1
37423 38593
-3.0
Revenue passenger km (m)
UK/Europe 1598 1722 -7.2
20818 21889
-4.9
Americas 3731 4041 -7.7
45048 45707
-1.4
Asia Pacific 1251 1710 -26.9
15895 18108
-12.2
Africa and Middle East 1444 1587
-9.0 17471
18780 -7.0
Total 8023 9061 -11.4
99233 104484
-5.0
Available seat km (m)
UK/Europe 2594 2661 -2.5
31316 34884
-10.2
Americas 5156 5075 +1.6
61528 62949
-2.3
Asia Pacific 1739 2108 -17.5
20659 24516
-15.7
Africa and Middle East 2100 2113
-0.6 24603
26379 -6.7
Total 11589 11957 -3.1
138106 148728
-7.1
Passenger load factor (%)
UK/Europe 61.6 64.7 -3.1
pts 66.5 62.7
+3.8 pts
Americas 72.4 79.6 -7.2
pts 73.2 72.6
+0.6 pts
Asia Pacific 71.9 81.1 -9.2
pts 76.9 73.9
+3.0 pts
Africa and Middle East 68.8 75.1
-6.3 pts 71.0
71.2 -0.2 pts
Total 69.2 75.8 -6.6
pts 71.9 70.3
+1.6 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK) 358 373 -4.0
4207 4029
+4.4
Total RTK 1158 1278 -9.5
14129 14482
-2.4
Available tonne km (m) 1770 1837
-3.7 21214
22615 -6.2
Overall load factor (%) 65.4 69.6
-4.2 pts 66.6
64.0 +2.6 pts
Certain information included in this statement is forward-looking and involves risks and
uncertainties that could cause actual results to differ materially from those expressed or
implied by the forward looking statements.
Forward-looking statements include, without limitation, projections relating to results of
operations and financial conditions and the Companys plans and objectives for future
operations, including, without limitation, discussions of the Companys Future Size and
Shape programme, expected future revenues, financing plans and expected expenditures and
divestments. All forward-looking statements in this report are based upon information
known to the Company on the date of this report. The Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
It is not reasonably possible to itemise all of the many factors and specific events that
could cause the Companys forward looking statements to be incorrect or that could
otherwise have a material adverse effect on the future operations or results of an airline
operating in the global economy. Information on some factors which could result in
material difference to the results is available in the Companys SEC filings, including,
without limitation the Companys Report on Form 20-F for the year ended March 2002.
Investor Relations
Waterside (HCB3)
PO Box 365
Harmondsworth
UB7 OGB
Tel: +44 (0) 20 8738 6947
Fax: +44( 0) 20 8738 9602