Interim Results

British Airways PLC
6 November 2001



INTERIM RESULTS



  * Pre-tax profit of £5 million for the quarter

  * Operating profit of £72 million for the quarter

  * No interim dividend declared

  * Passenger yields up 6.1 per cent

  * Cash balances in excess of £1 billion



London, Tuesday, November 6, 2001: British Airways today announced a pre-tax
profit of £5 million (2000: £200m) for the three months ended September 30,
2001.

The three-month pre-tax figures took the result for the half-year to £45
million (2000: £150 million).

Yields in the second quarter were up 6.1 per cent, an increase for the eighth
successive quarter.

Operating profit for the quarter was £72 million (2000: £264 million). The
figure for the six months was £122 million (2000: £361 million).

Group turnover for the second quarter was £2,251 million (2000: £2,552
million) down 11.8 per cent, on a flying programme reduced by 12.6 per cent,
measured in available seat kilometres (ASKs). The downturn in the US economy,
the impact of foot and mouth and the events of September 11 in the United
States have all contributed to a reduction in traffic volumes, measured in
revenue passenger kilometres (RPKs), of 16.5 per cent. Seat factor was down
3.5 points to 73.9 per cent.

Excluding the impact of adverse exchange rates and fuel prices, unit costs
increased by only one per cent.

As previously announced, there will be no interim dividend.

Rod Eddington, British Airways' Chief Executive, said: 'Even before the US
terrorist attacks, market conditions were tough with the slowdown in the US
economy affecting our business, but we have a sound strategy in place to
counter its effects.

'The impact on our interim and second quarter results should come as no
surprise. We remain committed to our strategy of maximising our share of
profitable business and reducing less profitable capacity, as well as removing
further costs.

'As a result of September 11, we have moved swiftly to conserve cash, ground
aircraft, reduce capacity and reduce manpower and other costs. We have also
taken prudent steps to increase liquidity throughout this period of
uncertainty which may well extend to the next financial year.'

Lord Marshall, the Chairman, said: 'The outlook for the second half is
difficult to predict, although we anticipate a significant operating loss for
the year. Despite the current uncertainty, our strategy is sound and we will
continue to implement it sensibly as we go forward. We are ready to take
advantage of consolidation opportunities as they arise and are confident we
will be well placed in the restructured airline industry as it emerges, when
the upturn in global demand arises.'

                                     ends


November 6, 2001                                        139/LE/01




Notes to editors


  * Copies of the summary interim statement will be issued to all
    shareholders in the British Airways Investor newspaper. Copies of the full
    interim report are available from the company's registered office and on
    the internet at www.britishairways.com/investor.

  * Copies of the slides used at the company's half-year results
    presentation to investment analysts are on www.bashares.com.

  * British Airways press releases are on www.britishairways.com/press.