December 02 Traffic Stats

British Airways PLC
06 January 2003


TRAFFIC AND CAPACITY STATISTICS - DECEMBER 2002


Summary of the headline figures

In December 2002, overall load factor improved by 2.0 points to 66.6 per cent.
Passenger capacity, measured in Available Seat Kilometres, was 0.9 per cent
below December 2001 while traffic, measured in Revenue Passenger Kilometres,
rose by 2.8 per cent. This resulted in a passenger load factor improvement of
2.5 points versus last year, to 71.2 per cent. The rise in traffic comprised a
1.0 per cent reduction in premium traffic and a 3.3 per cent increase in
non-premium traffic. Cargo, measured in Cargo Tonne Kilometres, increased by 2.5
per cent.


For the October - December quarter, ASKs reduced by 2.1 per cent, with RPKs
rising by 6.4 per cent. This resulted in an increase in passenger load factor
increase of 5.7 points, to 70.9 points. This comprised a 10.1 per cent rise in
premium traffic and 5.8 per cent increase in non-premium traffic. CTKs rose by
9.8 per cent.


Market conditions

The global economic environment continues to be difficult and as a result,
trading conditions are challenging. As previously forecast, revenue for the
financial year will be down versus last year.


Costs

As a result of Yen depreciation against sterling, there will be a non-cash
accounting credit of £1 million in the third quarter financial results.


Strategic developments

British Airways announced it is to switch its current aircraft order with Airbus
to receive 10 A321 aircraft instead of 12 A318 aircraft and three A319 aircraft.
The airline's capital spend with Airbus for the orders placed in 1998 and 1999
remains unchanged. The 108-seater A318s and the 126-seater A319s were ordered
originally to be based at regional airports in the UK. However, as part of its
fleet simplification strategy, British Airways has decided to base its Airbus
fleet at London's Heathrow and Gatwick airports and re-deploy its fleet of 16
110-seater RJ100 aircraft from Gatwick to the British Airways CitiExpress fleet
at regional airports. As the Airbus fleet will now be based in London, switching
the order to A321s, which can have up to 195 seats, enables the airline to use
the larger aircraft on high density routes from Heathrow to continental Europe.
The A321s, which are powered by IAE V2500 series engines, will be delivered
between September 2004 and December 2005.

British Airways announced it is to begin flying from London City Airport in
April 2003 with the launch of three new routes to Frankfurt, Glasgow and Paris
Charles de Gaulle operated by British Airways CitiExpress, a wholly owned
subsidiary.

Using RJ100 aircraft, the new London City routes are aimed primarily at the
European and domestic business markets. In addition British Airways will give
its key Manchester network a major boost with the introduction of three new
routes and extra capacity this year. British Airways CitiExpress has also signed
a heads of terms with Humberside based Eastern Airways to transfer 12 Jetstream
41 aircraft and its associated engineering hangar at Glasgow as part of an
accelerated strategy to move to an all jet regional operation. British Airways
CitiExpress plans to withdraw from 21 regional routes and will no longer fly
from Cardiff and Leeds-Bradford airports. Eastern Airways plans to operate
routes from Leeds Bradford to Aberdeen, Southampton and Isle of Man; Newcastle
to Birmingham, Aberdeen, Southampton.


Rod Eddington, Chief Executive of British Airways, is to be Chairman of the
Association of European Airlines which represents the major European scheduled
airlines, for 2003.

                                      ends

January 6, 2003 KG/001/03

BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS

                                             Month of December                      Financial year to date
                                                                                    April through December
                                                                 Change                                   Change
SCHEDULED SERVICES                         2002         2001        (%)              2002       2001         (%)
Passengers carried (000)
UK/Europe                                  1962         1846       +6.2             20748      21478        -3.4
Americas                                    561          506      +10.8              5137       5109        +0.6
Asia Pacific                                131          151      -13.8              1190       1319        -9.7
Africa and Middle East                      226          215       +5.0              1901       2086        -8.9
Total                                      2878         2719       +5.9             28976      29991        -3.4

Revenue passenger km (m)
UK/Europe                                  1510         1440       +4.9             16346      17327        -5.7
Americas                                   3789         3494       +8.4             34605      34879        -0.8
Asia Pacific                               1344         1558      -13.7             12142      13240        -8.3
Africa and Middle East                     1560         1490       +4.8             12817      14101        -9.1
Total                                      8204         7983       +2.8             75910      79547        -4.6

Available seat km (m)
UK/Europe                                  2449         2457       -0.4             23812      27249       -12.6
Americas                                   5104         4901       +4.2             46757      48342        -3.3
Asia Pacific                               1775         2160      -17.8             15628      18336       -14.8
Africa and Middle East                     2192         2106       +4.0             18336      20164        -9.1
Total                                     11519        11624       -0.9            104533     114091        -8.4

Passenger load factor (%)
UK/Europe                                  61.7         58.6       +3.1 pts          68.6       63.6        +5.0 pts
Americas                                   74.2         71.3       +2.9 pts          74.0       72.1        +1.9 pts
Asia Pacific                               75.7         72.2       +3.5 pts          77.7       72.2        +5.5 pts
Africa and Middle East                     71.2         70.7       +0.5 pts          69.9       69.9        +0.0 pts
Total                                      71.2         68.7       +2.5 pts          72.6       69.7        +2.9 pts

Revenue tonne km (RTK) (m)
Cargo tonne km (CTK)                        345          337       +2.5              3220       3029        +6.3
Total RTK                                  1173         1145       +2.4             10805      10981        -1.6
Available tonne km (m)                     1762         1773       -0.6             16062      17316        -7.2
Overall load factor (%)                    66.6         64.6       +2.0 pts          67.3       63.4        +3.9 pts

Certain information included in this statement 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 'Future Size and Shape' programme, 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 2002.


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