IAG, the British Airways and Iberia merger company, reported that in July 2013 Group traffic measured in Revenue Passenger Kilometres increased by 6.6 per cent versus July 2012 (down 2.8 per cent on a pro-forma basis); Group capacity measured in Available Seat Kilometres rose by 8.5 per cent (down 1.7 per cent on a pro-forma basis).
Group premium traffic for the month of July increased by 0.4 per cent compared to the previous year, on falling capacity. Traffic in long haul is still influenced by the Group policy to improve unit revenues through yield, rather than load, as well as by the timing of Ramadan. Underlying market conditions remain unchanged.
Other developements. On 2 August, IAG announced that the delisting offer for the 9.49 per cent of Vueling shares that the IAG Group did not own was accepted by 73.86 per cent of the shares subject to the offer. Following settlement, IAG Group will own 97.52 per cent of Vueling which will be delisted from the Spanish stock exchanges.
On 4 July, the labour division of the Spanish High Court ruled that the mediation agreement reached with 93 per cent of Iberia employees is applicable to all employee groups.
British Airways has received the first of its 12 Airbus A380 firm orders. A further two A380s will be delivered in 2013 plus five in 2014. The aircraft will begin commercial long-haul flights to Los Angeles from 24 September. The next two routes after Los Angeles will be Hong Kong (October 2013) and Johannesburg (February 2014).
Iberia’s commercial initiatives continue with the retrofit of A340-600s on routes to Latin America. In addition, it launched a new baggage tag online service, becoming the first carrier worldwide to offer this facility and updated its website.