3rd Quarter Results - Part 1

British Airways PLC
04 February 2005


THIRD QUARTER RESULTS
     
•    Pre-tax profit of £75 million for the quarter

•    Operating profit of £110 million

•    Unit costs up 0.1 per cent

•    Operating margin at 5.6 per cent

•    Net debt at £3.2 billion
     
British Airways today reported a pre-tax profit of £75 million for the three
months to December 31, 2004 against a pre-tax profit of £125 million for the
same period last year.

The three month pre-tax figures took the results for the nine months to a profit
of £410 million (2003: £185 million profit).

Operating profit for the quarter was £110 million, (2003: £138 million).  For
the nine months, operating profit was £500 million (2003: £373 million).

Rod Eddington, British Airways' chief executive, said: 'These are respectable
results in a quarter where fuel costs increased by £106 million (47.3 per cent).
Our focus remains on reducing controllable costs and debt whilst continuing to
invest in our products.  For example, we have taken delivery of six Airbus A321
aircraft and next month we will start further improvements to our Club World
flat beds.'

Martin Broughton, chairman, said: 'Market conditions for the current financial
year remain broadly unchanged.  For the year to March 2005, the total revenue
outlook is slightly better than previous guidance with a 3.0-3.5 per cent
improvement anticipated.  All market segments remain price sensitive and yield
declines are expected to continue.

'Fuel costs net of hedging are still expected to be about £245 million more than
last year.  Passenger and cargo fuel surcharges partially offset this increase.'

Group turnover for the third quarter at £1,973 million was up 4.3 per cent on a
flying programme 2.1 per cent larger, as measured in available tonne kilometres
(ATKs).  This reflected the impact of fuel surcharges and an increase in cargo
revenue of 6.3 per cent with passenger revenue declining by 0.1 per cent.

Passenger yields, measured in revenue per revenue passenger kilometres (RPKs),
were down 1.9 per cent; seat factor was up 0.1 points at 72.8 per cent on
capacity 1.8 per cent higher in available seat kilometres (ASKs).

For the nine month period, turnover improved by 3.8 per cent to £5,924 million
on a flying programme 3.8 per cent higher in ATKs.  Passenger yields were down
3.8 per cent with seat factor up 1.7 points at 75.4 per cent on capacity 2.3 per
cent higher in ASKS.

For the quarter, unit costs increased by 0.1 per cent on the same period last
year as a result of a net cost increase of 2.2 per cent on capacity 2.1 per cent
higher in available tonne kilometres (ATKs).

Operating expenditure in the quarter increased by 6.3 per cent primarily due to
increased fuel costs (up 47.3 per cent) and employee costs (up 3.2 per cent).
Selling costs continue to reduce - down by 10.2 per cent in the quarter - due to
lower commission payments to travel agents and growth in online bookings.

Borrowings, net of cash, short term loans and deposits, were £3,194 million at
December 31, down £3.4 billion from the December 2001 peak and down £964 million
since the start of the year.

Cargo volumes for the quarter, measured in cargo tonne kilometres (CTKs), were
up 8.1 per cent compared with last year and yields, measured in cargo revenue
per CTK, down 1.6 per cent.  For the nine month period, cargo volumes were up
12.9 per cent, with yields down 6.3 per cent.

Overall load factor for the quarter was up 1.2 points at 69.9 per cent.  For the
nine months, overall load factor was up 2.1 points at 70.2 per cent.

Operating margin for the quarter of 5.6 per cent was 1.7 points lower than last
year.


                                      Ends

February 4, 2005                                                     009/KG/2005

A webcast of British Airways' conference call to city analysts can be accessed
via the internet  www.bashares.com - on Friday, February 4 at 2pm.

Certain information included in these statements is forward-looking and involves
risks and uncertainties that could cause actual results to differ materially
from those expressed or implied by the forward looking statements.

Forward-looking statements include, without limitation, projections relating to
results of operations and financial conditions and the company's plans and
objectives for future operations, including, without limitation, discussions of
the company's Business Plan programmes, expected future revenues, financing
plans and expected expenditures and divestments. All forward-looking statements
in this report are based upon information known to the company on the date of
this report. The company undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new information, future
events or otherwise.

It is not reasonably possible to itemise all of the many factors and specific
events that could cause the company's forward looking statements to be incorrect
or that could otherwise have a material adverse effect on the future operations
or results of an airline operating in the global economy. Information on some
factors which could result in material difference to the results is available in
the company's SEC filings, including, without limitation the company's Report on
Form 20-F for the year ended March 2004.



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