March traffic statistics

British Airways PLC
03 April 2003



TRAFFIC AND CAPACITY STATISTICS - March 2003

Summary of the headline figures

In March 2003, overall load factor fell 4.2 points to 65.4 per cent. Passenger
capacity, measured in Available Seat Kilometres, was 3.1 per cent below March
2002 and traffic, measured in Revenue Passenger Kilometres, was lower by 11.4
per cent. This resulted in a passenger load factor down 6.6 points versus last
year, to 69.2 per cent. The fall in traffic comprised a 23.8 per cent reduction
in premium traffic and a 9.2 per cent decrease in non-premium traffic. These
numbers were impacted by the timing of Easter versus last year. Cargo, measured
in Cargo Tonne Kilometres, fell by 4.0 per cent.

For the January - March quarter, ASKs reduced by 3.1 per cent, with RPKs falling
by 6.5 per cent. This resulted in a decrease in passenger load factor of 2.5
points, to 69.5 points. This comprised a 15.7 per cent fall in premium traffic
and 4.8 per cent fall in non-premium traffic. CTKs fell by 1.1 per cent.

Market conditions

Revenue and forward bookings have been impacted by the threat and outbreak of
war with Iraq. The reductions are in line with company expectations. There is
currently limited forward visibility on revenue and traffic reflecting the war,
economic uncertainty, competitor activity and the impact of SARS. The latter has
already affected bookings, in particular, on Far East routes.

Costs

As a result of Yen appreciation against sterling, there will be a non-cash
accounting charge of £18 million in the fourth quarter financial results. Fuel
costs for the financial year ending 31 March 2004 are still expected to be
approximately £100 million higher than for the year ended 31 March 2003. The
company is currently some 70% hedged in quarter one and some 45% hedged in
quarter two.

Strategic Developments

British Airways announced a package of measures in response to the impact on its
business of the conflict in Iraq. Following the actual and anticipated downturn
in passenger traffic, the airline implemented a reduced flying programme and an
acceleration of its Future Size and Shape restructuring programme. The measures
include:


  • An overall capacity reduction of four per cent in April and May, involving
    reduced frequencies and the use of smaller aircraft.

  • The Future Size and Shape programme's overall manpower reduction target of
    13,000 by March 2004 accelerated to September this year.

  • An extension of the company's unpaid leave scheme for staff.

  • A review of all capital expenditure and external spend.

British Airways announced the suspension of its daily service between London
Heathrow and Kuwait, until further notice, from March 19, following Foreign and
Commonwealth Office travel advice. In addition, only one flight a day is being
operated to Tel Aviv instead of the usual twice daily schedule.

British Airways re-launched its Executive Club loyalty programme to make the
scheme simpler, with more ways to spend BA Miles and better incentives for loyal
customers to take effect from July 1, 2003.

Easyjet notified British Airways that it will not exercise the option to buy its
German subsidiary, dba (formally Deutsche BA). EasyJet has paid the airline £6.1
million during the purchase option period. The company will continue to work
towards the long term future of dba and it remains business as usual for
customers and staff. British Airways will continue to develop dba as a no-frills
carrier.

British Airways and SN Brussels Airlines received approval from the European
Commission to continue their commercial relationship agreed in July 2002. It
enables the two airlines to codeshare on selected flights and offer reciprocal
frequent flyer benefits for customers. To date, the airlines now codeshare on
six routes in Europe. SN Brussels puts its code on British Airways operated
services between London Heathrow, London Gatwick, Southampton and Brussels. At
the same time, British Airways applies its code to SN Brussels operated services
between Birmingham, Newcastle, Bristol and Brussels.

                                      ends

April 3, 2003 035/KG/03



                                BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS

                                             Month of March                                  Financial year to date
                                                                                              April through March
BRITISH AIRWAYS GROUP                                            Change                                           Change
SCHEDULED SERVICES                      2003         2002       (%)              2002/3           2001/2       (%)

Passengers carried (000)
UK/Europe                               2110         2185      -3.4               26632            27351      -2.6
Americas                                 548          589      -6.9                6672             6681      -0.1
Asia Pacific                             120          162     -25.6                1552             1786     -13.1
Africa and Middle East                   199          235     -15.1                2568             2774      -7.4
Total                                   2978         3171      -6.1               37423            38593      -3.0
Revenue passenger km (m)
UK/Europe                               1598         1722      -7.2               20818            21889      -4.9
Americas                                3731         4041      -7.7               45048            45707      -1.4
Asia Pacific                            1251         1710     -26.9               15895            18108     -12.2
Africa and Middle East                  1444         1587      -9.0               17471            18780      -7.0
Total                                   8023         9061     -11.4               99233           104484      -5.0
Available seat km (m)
UK/Europe                               2594         2661      -2.5               31316            34884     -10.2
Americas                                5156         5075      +1.6               61528            62949      -2.3
Asia Pacific                            1739         2108     -17.5               20659            24516     -15.7
Africa and Middle East                  2100         2113      -0.6               24603            26379      -6.7
Total                                  11589        11957      -3.1              138106           148728      -7.1
Passenger load factor (%)
UK/Europe                               61.6         64.7      -3.1 pts            66.5             62.7      +3.8 pts
Americas                                72.4         79.6      -7.2 pts            73.2             72.6      +0.6 pts
Asia Pacific                            71.9         81.1      -9.2 pts            76.9             73.9      +3.0 pts
Africa and Middle East                  68.8         75.1      -6.3 pts            71.0             71.2      -0.2 pts
Total                                   69.2         75.8      -6.6 pts            71.9             70.3      +1.6 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK)                     358          373      -4.0                4207             4029      +4.4
Total RTK                               1158         1278      -9.5               14129            14482      -2.4
Available tonne km (m)                  1770         1837      -3.7               21214            22615      -6.2
Overall load factor (%)                 65.4         69.6      -4.2 pts            66.6             64.0      +2.6 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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