Final Results - Part 1

British Airways PLC
13 May 2005

COST PERFORMANCE DELIVERS GOOD RESULTS



•        Pre-tax profit of £415 million

•        Operating profit of £540 million

•        Net costs down 1.6 per cent

•        Unit costs down 4.7 per cent

•        Net debt at £2.9b - lowest level since 1993


British Airways today announced a pre-tax profit of £415 million for the year to
March 31, 2005 (2004: £230 million profit). There was a pre-tax profit for the
fourth quarter of £5 million (2004: £45 million profit).

Operating profit for the year was £540 million (2004: £405 million profit). The
operating margin was 6.9 per cent (2004: 5.4).  The operating profit for the
fourth quarter was £40 million (2004: £32 million profit).

Net debt at £2.9 billion fell by £1.2 billion during the year and is at its
lowest level since 1993. Cash inflow, before financing, was £1.2 billion, an
increase of £307 million.

Rod Eddington, British Airways chief executive, said: 'These are good results
driven by continued cost control and strong demand for our products.  Seat
factors are at record levels, but yield, down 4.4 per cent, continues to be
under pressure and is down for the third year running.

'We have exceeded our 2003 -2005 business plan savings of £450 million by £7
million.

This included reducing external spend by £300 million and improving our use of
technology.  During the year we have substantially improved our online
capability to improve customer service and increase the airline's efficiency.'

Mr Eddington added: 'Self-service check-in has reached an all time high with
nearly 600,000 passengers a month using our kiosks at airports. Online printed
boarding passes are now accepted at 41 airports across our network and more than
40,000 customers a month choose to print their boarding passes from their home
or office.

'British Airways has won an innovation award for its online 'manage my booking'
facility.  This allows customers to select a seat, choose a special meal, add
their Executive Club details to their booking and email their itinerary to
friends. Usage of e-tickets has grown from 41 per cent to 76 per cent - the
highest usage of any network airline outside of the United States.'

'We have achieved a 6.9 per cent operating margin which is up 1.5 points and the
best margin since 1997.  As a result this has triggered our employee reward
programme.  All our staff will receive a bonus for their efforts, the first time
such a payment has been made since 1998.'

Martin Broughton, British Airways chairman, said: 'Market conditions remain
broadly unchanged. For the year to March 2006, total revenue is expected to
improve by 4-5 per cent, up from 3-4 per cent due to the impact of the latest
fuel surcharges. Capacity and volumes are expected to increase by about 3 per
cent with total yield flat.

'Fuel costs, net of hedging, are now expected to be about £400 million more than
last year, up from £300 million due to recent price rises.

'As announced in our latest business plan, our focus is on preparing for the
move to Terminal 5 at London Heathrow in 2008, investing in products for our
customers and continuing to drive simplification to deliver a competitive cost
base.'

The Board has recommended that no final dividend be paid.

Group turnover for the year was £7,813 million, up 3.3 per cent on a flying
programme

3.2 per cent bigger in available tonne kilometers (ATKs).  For the quarter,
group turnover was up 1.9 per cent at £1,889 million on a flying programme 1.6
per cent higher in ATKs.

Revenue passenger kilometres (RPKs) were up 4.7 per cent for the year and up by
4.5 per cent for the quarter.  Seat factor was up 1.8 points for the year at a
record 74.8 per cent and up 2.2 points in the quarter to a record 73 per cent.

Net costs for the year were down by 1.6 per cent and unit costs improved by 4.7
per cent.  In the quarter, net costs were down 1.9 per cent, and unit costs
improved by 3.5 per cent.

For the year, cargo volumes measured in cargo tonne kilometers (CTKs) were up
11.1 per cent compared with last year, with yields down 6.3 per cent. Overall
load factor was up 2.1 points at 69.7 per cent. For the quarter, cargo volumes
were up 5.7 per cent compared with last year, with overall load factor up 2.1
points at 68.2 per cent, but yields were down 6.2 per cent.


                                      ends



13 May, 2005                     047/KG/05


Notes to editors:

At March 2005, the FRS17 accounting valuation of the airline's group pension
schemes showed a deficit of £1.4 billion (2004: £1.2 billion net deficit).

A webcast of British Airways' presentation to city analysts can be accessed via
the internet on www.bashares on Friday, May 13 at 9am followed by a conference
call to city analysts at 2pm.

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, 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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