Director Shareholding

British Airways PLC
12 June 2001

BRITISH AIRWAYS LONG TERM INCENTIVE PLAN AWARDS

The Company has today notified Mr R I Eddington and Mr M A Street, both
Directors, of conditional awards of ordinary share options at nil cost under the
British Airways Long Term Incentive Plan which were formally granted to each of
them on 8 June 2001. One third of their respective awards may vest at the end of
each of the third, fourth, fifth financial years from the year of grant, i.e.
2004, 2005 and 2006. The total award of ordinary shares potentially receivable
if the performance of British Airways measured by total shareholder return
relative to other companies within the FTSE 100 index places the Company at or
above the 90th percentile when compared with the TSR for each of those companies
is 105,000 and 61,000 respectively.