In January 2008 passenger capacity measured in Available Seat Kilometres was 0.6 per cent below January 2007. Traffic, measured in Revenue Passenger Kilometres, fell 1.6 per cent. This resulted in a passenger load factor down 0.7 points versus last year, to 69.2 per cent.
Traffic comprised an 8.8 per cent increase in premium traffic and a 3.5 per cent fall in non-premium traffic. Comparatives between January 2007 and 2008 are difficult. In 2007, although a full schedule was operated, bookings were impacted by the threat of industrial action. In 2008, there were a significant number of cancellations.
These were caused by the landing incident with BA38 on January 17, which impacted runway operations for several days. In addition, several instances of fog and high winds during the month caused flow rates to be reduced, which led to further cancellations.
Cargo, measured in Cargo Tonne Kilometres, rose by 16.0 per cent.
Market conditions As reported in Friday's Interim Management Statement, premium traffic remains strong, particularly in the Club World cabin. Longhaul non-premium and shorthaul premium markets continue to show weakness. Strategic Developments
British Airways said its new EU-US subsidiary airline "OpenSkies" will operate daily flights from Brussels and Paris to New York. The airline will launch in June 2008 with one Boeing 757 aircraft and plans to operate six B757s by the end of 2009.
Following the Government's decision to lift hand baggage restrictions British Airways customers flying through and out of Heathrow are now able to take two pieces of free hand baggage on board. The one bag limit is still in place at Gatwick.
British Airways announced it is to start flights from Heathrow to the Indian city of Hyderabad from October 27, 2008. Hyderabad will be the airline's sixth Indian destination joining Bangalore, Chennai, Delhi, Kolkata and Mumbai on its route network. The new service will be operated by a Boeing 777 with five services per week.
British Airways said it is increasing its service to Buenos Aires with daily flights and non-stop to Rio de Janeiro next winter. The airline is upping its Heathrow to Buenos Aires flights from four per week to a daily service and flying non-stop from Heathrow to Rio instead of via Sao Paulo, cutting more than two hours off the flight time.
The airline unveiled a new carbon offset scheme and backing for deforestation prevention in Brazil. It is also supporting research into the effects of aircraft's non-carbon emissions. The offset scheme uses UN certified emissions reductions to help finance clean energy projects in developing countries. Customers offsetting their flight emissions will be supporting a new windfarm in one of the poorest regions of China, as well as run-of-the-river hydro electric plants in China and Brazil.
British Airways unveiled the latest feature of its new home in Terminal 5 - a luxurious complex of six lounges covering 15,000 square feet, based on the look and feel of a modern boutique hotel. The lounges or 'galleries' complex is the largest and most luxurious in the world for the exclusive use of up to 2,500 British Airways premium passengers and top tier members of the oneworld alliance's frequent flyer schemes.
At the Civil Aviation Authority (CAA) hearing on the BAA airport charges review, British Airways urged the CAA to stop BAA delaying the introduction of improved customer service quality targets at Heathrow by up to two years.
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