Improved Revenue

British Airways PLC
19 May 2006

IMPROVED REVENUE DRIVES GOOD RESULTS

•         Pre-tax profit of £620 million
•         Operating profit of £705 million
•         Net costs up 2.9 per cent
•         Unit costs up 0.5 per cent
•         Net debt at £1.6 billion

British Airways today announced a pre-tax profit of £620 million for the year to
March 31, 2006 (2005: £513 million profit).  The pre-tax profit for the fourth
quarter was £91 million (2005: £6 million loss).

Operating profit for the year was £705 million (2005: £556 million profit) and
£93 million for the quarter (2005: £46 million profit).  The operating margin
was 8.3 per cent (2005: 7.2 per cent) and 4.4 per cent in the quarter (2005: 2.5
per cent).

Net debt at £1.6 billion fell by £1.3 billion during the year, a £5 billion
reduction since its December 2001 peak.  Operating cashflow was £1.3 billion, an
increase of £334 million.

Willie Walsh, British Airways' chief executive, said: 'These are good results
with revenue performance driven by improvements in seat factors and yield.

'We achieved an operating margin of 8.3 per cent and as a result all our staff
will share in a £48 million bonus.  We remain committed to our goal of reaching
a 10 per cent margin by 2008. Our shorthaul business is now in profit for the
first time in 10 years but we have still more to do.

'Total costs, however, are up 8.2 per cent with fuel and employee costs a
challenge.  Our annual fuel bill rose by 44.7 per cent to £1.6 billion.
Employees costs were up 5.0 per cent.

'The accounting deficit in the New Airways Pension Scheme (NAPS) is up by £101
million to £2.1 billion, despite the company's increased contributions and
equity markets at a five year high.  We have announced our proposal to tackle
the pension deficit and I am pleased with the dialogue we have had with staff,
trustees and trade unions on this vital issue.

'Self-service check-in, both online and at airport kiosks, has been very well
received by our customers.  We continue to enhance and develop new products and,
this summer, we will upgrade our inflight entertainment and introduce our new
Club World flat bed.'

Martin Broughton, British Airways' chairman, said: 'Market conditions remain
broadly unchanged.  For the year to March 2007 total revenue is expected to
improve by 5-6 per cent, up from a previous estimate of 4-5 per cent, due to the
impact of the latest fuel surcharges and increases in seat factor.  Capacity is
expected to increase by 2.5-3 per cent, with a small decline in yields,
excluding fuel surcharges.

'As previously stated, fuel costs, net of hedging, are expected to be about £600
million more than last year, up from our previous guidance of £400 million, due
to the recent strong rise in fuel prices.  Costs, excluding fuel, are expected
to be unchanged.'

Group turnover for the year was £8,515 million, up 9.6 per cent on a flying
programme 2.4 per cent bigger in available tonne kilometers (ATKs).  For the
quarter, group turnover was up 13.2 per cent at £2,122 million on a flying
programme 2.2 per cent higher in ATKs.

Revenue passenger kilometres (RPKs) were up 3.7 per cent for the year and up by
2.8 per cent for the quarter.  Seat factor was up 0.8 points for the year at a
record 75.6 per cent and up 0.1 points in the quarter to 73.1 per cent.  Yields,
excluding fuel surcharges, were up 1.3 per cent for the year and up 3.7 per cent
for the quarter.

Net costs for the year were up by 2.9 per cent and unit costs worsened by 0.5
per cent.  In the quarter, net costs and unit costs were up 4.1 per cent and 1.8
per cent respectively.

For the year, cargo volumes measured in cargo tonne kilometers were down 0.4 per
cent compared with last year, with yields up 3.8 per cent.  For the quarter,
cargo volumes were up 2.1 per cent compared with last year, with overall load
factor up 0.3 points at 68.5 per cent and yields were up, excluding fuel
surcharges at 8.3 per cent.

The Board has recommended that no final dividend be paid.

                                      ends

May 19, 2006
                                   038/KG/2006

Notes to editors:

•           The airline's employee reward plan is a bonus arrangement for
non-management staff linked to the full year operating margin.  The company had
to achieve an operating margin of 8.0 per cent after the cost of bonus
arrangements to trigger a bonus of one week's pay, with a minimum payment of
£500 for UK staff.  After adjustment to cover the cost of the bonus
arrangements, the operating margin for the year was 8.3 per cent and this
triggered bonuses of 1.15 weeks' pay for all non-management staff with a minimum
payment of £575.  This is adjusted for overseas staff and pro-rated for part
time employees.

•           For all periods up to and including March 2005 British Airways has
previously prepared its Group financial statements under UK Generally Accepted
Accounting Practice (UK GAAP).

•           British Airways restated its 2004/05 accounts to International
Financial Reporting Standards (IFRSs).  The restated accounts were published on
July 4, 2005. All comparators referred to are based on these restated accounts.

•           The NAPS accounting deficit is now measured under IAS19.


A webcast of British Airways' presentation to city analysts at 9am BST and the
analysts conference call at 2pm BST can be accessed via the internet on
www.bashares.com on Friday, May 19.

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 2005.




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