British Airways World Cargo’s 1st quarter revenues up 11.6%

British Airways World Cargo’s 1st quarter revenues up 11.6%    British Airways World Cargo Friday reported commercial revenues of '164 million ($312.9 million) for its fiscal first quarter ending June 30, an 11.6 percent improvement on the previous year.
   Volumes increased 4.1 percent to 1.23 billion cargo ton kilometers. Capacity, measured in available ton kilometers, rose 4.8 percent. Fuel costs were up 42 percent.
   “Costs have risen significantly due to higher fuel prices and additional freighter costs related to the expanded European short-haul freighter program,” said Sean Doyle, BA World Cargo’s financial controller. “We have gained significant capacity from additional line flights to India, Hong Kong and Peking and European destinations but lost some with the cessation of Melbourne flights at the start of the 2006 summer season.
   “Although overall yields have risen, competition has put underlying flown yields under further pressure in Africa and India. In terms of volume, dense, ad hoc shipments to the Americas and the Far East have significantly increased out of the U.K., but overcapacity in that market has driven down yields,” Doyle said.
   “It has been a tough start to the year with overall prices continuing to decline, which has been mitigated by the growth in premium products sales,” said Gareth Kirkwood, BA World Cargo’s managing director.
   “The high cost of fuel remains a major challenge, and consequently it is essential that we continue to grow profitable volumes going forward,” Kirkwood added.