BAWC half-year revenue down a third

BRITISH Airways World Cargo’s (BAWC) revenue was down by nearly a third for the first half of this financial year. The cargo carrier brought in only £250.6 million for the period, a decrease of 30.9 per cent against the same period last year.Volume was down 8.1 per cent to 2,240 million cargo tonne kilometres (CTK) versus the same period last year. This was driven by an 11.5 per cent decrease in the first quarter followed by a more stable 4.9 per cent decrease in the second quarter. Cargo capacity for the same six-month period was down 6.5 per cent.Overall yield (commercial revenue per CTK) decreased by 24.8 per cent versus last year, driven by lower fuel surcharges, market yield decline and favourable exchange. The yield decline, excluding exchange benefit, was 37.2 per cent.Rachel Izzard, BAWC’s new financial controller, said: “In the second quarter we’ve seen a slowdown in declining volumes and our premium volumes continue to perform relatively well given the economic conditions. We’re seeing equilibrium restored to some markets such as Asia Pacific, where capacity has been reduced to such a level that it is now in line with demand.”Steve Gunning, managing director, BAWC, added: “Whilst it has been a difficult six months, we are encouraged that we continue to outperform the market, and in the last quarter we have seen signs that the market is beginning to improve. We have taken aggressive steps to reduce costs and this has included reducing capacity. Looking ahead, we’re focused on continuing to drive yields back up to sustainable levels and delivering consistent customer service.”