EUROPE & CIS: BA Cargo cautious about coming months

British Airways World Cargo managed to stabilise its overall yield in the third quarter of its financial year (October-December 2007) with an average load factor up by 2.8 percentage points compared to the same quarter of 2006, the carrier said without giving actual figures. BA World Cargo managing director Steve Gunning said he is cautious […]


British Airways World Cargo managed to stabilise its overall yield in the third quarter of its financial year (October-December 2007) with an average load factor up by 2.8 percentage points compared to the same quarter of 2006, the carrier said without giving actual figures.

BA World Cargo managing director Steve Gunning said he is cautious about prospects for the rest of this year. "Our yields are holding at the moment but it is still early days. Price pressures continue to exist in this industry and I think will continue to do so for years to come."

BA World Cargo financial controller Sean Doyle added: "We’ve seen a notable volume recovery in the UK market and demand out of the Americas continues to grow, helped by our expanded shorthaul freighter network into Europe. "The strong euro, combined with tough conditions, means that the market remains challenging in Europe and price pressures continue to be a feature of the market in South Asia."

As for the short-term view on the industry, Gunning said: "This year has started reasonably well, but whether that turns into a good year rather than just a good month has still to be seen. In terms of volume growth for the industry this year, I am probably slightly in the cautious camp. I think I would have been more bullish six months ago than I am today."