August Traffic Statistics

BRITISH AIRWAYS PLC
3 September 1999

                                                                  
           TRAFFIC AND CAPACITY STATISTICS - AUGUST 1999


Introduction summary of the headline figures
British Airways continued its capacity discipline.  Mainline
scheduled Available Seat Kilometres (ASKs) declined by 0.1 per
cent.  Passenger load factor was unchanged from a year ago at
76.5% with August traffic, measured in Revenue Passenger
Kilometres, also unchanged.  Premium traffic grew by 3.0 per cent
with Club World continuing to benefit from redemptions under the
BA Popular Person offer.  Non-premium traffic declined by 0.4 per
cent.

Market conditions
Since our last traffic and capacity report a month ago, there has
been no significant change to the trading environment.  Market
conditions remain challenging.

Strategic developments
British Airways announced its intention to accelerate its
reduction in capacity.  The airline is now planning to reduce its
mainline scheduled capacity by 12 per cent over the next three to
four years.

British Airways also announced its intention to save a further
£225 million (excluding one-off severance costs) in the current
financial year.  This is in line with the strategy of decreasing
capacity and will support profitability in a challenging trading
environment.  The main focus of the actions will be on improving
efficiency in support areas of the company.  Plans include the
deferral of some non-fleet capital expenditure, an acceleration of
other cost-saving plans and some staff reductions. A reduction of
300 managers (a 10 per cent cut) has been targeted, with headcount
expected to be reduced by around 1000 staff in total by March
2000.  Staff reductions are expected to be managed by voluntary
means, the cost of which is expected to be in the region of £40
million.  The airline will continue to invest in its new strategy
and in innovative products.

British Airways continued its network refinement to reduce
capacity and focus resources in the most appropriate markets.  The
airline announced that, with effect from October 31, it will
suspend services to Pittsburgh and Jakarta whilst providing
additional frequencies to Dubai and New York.
In the shorthaul network, the airline announced that it would
suspend its own services between London Heathrow and Basle, but
codeshare with Crossair on that route.

Costs
Fuel costs continued to rise in August, with jet kerosene
currently trading at around $200 a tonne, compared to
approximately $165 per tonne at the end of our first quarter.  The
airline has hedged almost 70 per cent of its fuel requirement for
the second half of the current financial year.

The yen continued to strengthen against sterling.  At the end of
August, the value of the yen stood at  Yen 176.12 to the pound,
compared to Yen 190.65 at the end of June 1999.  At the current
sterling/yen rate and with a yen exposure of around Yen 139
billion relating to aircraft financing, this would result in an
accounting charge of around £60 million in the second quarter
financial results. Cashflow is unaffected.  The actual charge will
depend on the September 30 exchange rate.

Other highlights
In line with its strategy of improving its premium product
offering, British Airways announced plans for a £14 million
upgrade to Concorde.  The plans include new seats, new toilets,
interiors, tableware and a new lounge at Heathrow.

September 3 , 1999                           CS/122/99


   BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS                    
    
                           Month of August    Financial year to date         
                                              April through August    

                                                 
BRITISH AIRWAYS                  Change                  Change   
MAINLINE                                                   
SCHEDULED SERVICES   1999   1998   (%)      1999   1998   (%)   
                                                                
Passengers carried(000)                                              

UK/Europe            2167   2223  -2.5     10505  10671  -1.6   
Intercontinental     1279   1274  +0.4      5927   5798  +2.2   
Total                3446   3497  -1.4     16432  16469  -0.2   
                                                                
Revenue passenger km(m)                                               
UK/Europe            2023   2061  -1.8      9611   9681  -0.7   
Intercontinental     9224   9186  +0.4     42723  41956  +1.8   
Total               11247  11247  -0.0     52333  51637  +1.3   
                                                                
Available seat km(m)                                               
UK/Europe            2907   2834  +2.6     14113  13661  +3.3   
Intercontinental    11787  11870  -0.7     57682  57040  +1.1   
Total               14695  14704  -0.1     71795  70701  +1.5   
                                                                
Passenger load factor(%)                                                  
UK/Europe            69.6   72.7  -3.1 pts 68.1   70.9  -2.8 pts
Intercontinental     78.3   77.4  +0.9 pts 74.1   73.6  +0.5 pts
Total                76.5   76.5  +0.0 pts 72.9   73.0  -0.1 pts
                                                             
                                                                
Revenue tonne km(RTK)(m)                                                
Cargo tonne km(CTK)   364    357  +2.0     1772   1782  -0.6   
Total RTK            1488   1483  +0.3     6986   6929  +0.8   
Available tonne km(m)2120   2093  +1.3    10348  10102  +2.4   
                                                                
Overall load         70.2   70.9  -0.7 pts 67.5   68.6  -1.1 pts
factor (%)                             
                                                                
                                                                
TOTAL GROUP SCHEDULED                                              
SERVICES
(including Deutsche BA, Air Liberte)                                          
 Passengers carried   4011   4024  -0.3     19304  19258  +0.2   
(000)
Revenue passenger   11816  11784  +0.3     54988  54154  +1.5   
km (m)
Available seat km(m)15491  15488  +0.0     75697  74497  +1.6   
Total RTK (m)        1547   1540  +0.5      7255   7187  +1.0   
Available tonne km(m)2196   2168  +1.3     10722  10470  +2.4   

                                                                
                                                                    
                                                   Shareholder Value
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                                     West Drayton, Middlesex UB7 OGB

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