Press release

British Airways PLC
04 August 2006

GOOD RESULTS DRIVEN BY STRONG REVENUE

•         Pre-tax profit up 57 per cent to £195 million
•         Operating profit up 20 per cent to £211 million
•         Operating margin of 9.1 per cent
•         Revenue up 12.5 per cent to £2.3 billion

•         Total costs up 11.8 per cent

British Airways today reported a pre-tax profit of £195million (2005: £124
million profit) for the first quarter to June 30, 2006.

The operating profit for the first quarter was £211 million (2005: £176 million
profit) delivering an operating margin of 9.1 per cent (2005: 8.5 per cent).

Operating cashflow was £475 million, an increase of £126 million from last year.

Willie Walsh, British Airways' chief executive, said: 'These are good results
driven by strong revenue as a result of record seat factors and better cabin
mix.  Total costs are up with fuel up 44 per cent at £512 million.  Employee
costs are up 7 per cent and reflects increased pension costs as a result of the
£2.1 billion accounting deficit in our New Airways Pension Scheme

'Our customers continue to see the benefit of investments in products and
services with the introduction of our upgraded in-flight entertainment system.
Our new Club World bed will be launched soon.  We have announced new services to
Calgary and an eighth daily service from London Heathrow to New York JFK.  We
are also increasing flights from London Heathrow to Sao Paulo in Brazil from
seven to 10 each week from December 3, 2006.

'On shorthaul our new low fares have been a big success.  While competition in
this market is brutal I am delighted to see we are winning customers with record
seat factors.  We're now even more competitive on price whilst keeping ahead of
the game by offering full service flights, more frequently to more convenient
airports.

'We continue to make steady progress on changes to working practices.  We
recently agreed a deal with two further groups of staff including dispatchers
and loaders ahead of our move to Terminal 5.  This comes on top of agreements
with our aircraft movements staff, equipment services and ground transport
services and the new single cabin crew fleet agreement at Gatwick.'

Martin Broughton, British Airways' chairman, said: 'Strong revenue is expected
to continue, supported by significant promotional activity driving seat factors
in all cabins.  For the year to March 2007, total revenue is expected to improve
by 6-7 per cent up from previous guidance of 5-6 per cent.  Capacity growth in
the first half of the year is expected to be about 4 per cent slowing in the
second half of the year to achieve a full year increase of 2.5 - 3 per cent.

'Fuel costs for the year are now expected to be £550 - £600 million up on last
year.  Costs excluding fuel which were previously forecast flat, are now
expected to be slightly higher this year as pension costs are driving employee
costs up.

'We continue to focus on our move to Terminal 5 in 2008, investing in our
products for our customers and driving a competitive cost base to make our
company fit for growth.'

Revenue in the quarter, at £2.3 billion, was up 12.5 per cent.

Traffic measured in revenue passenger kilometres (RPKs) was up 7.7 per cent on a
flying programme measured in available seat kilometers (ASKs) up 4.1 per cent.
This  delivered  seat factors up 2.7 points at a record 78.3 per cent in the
quarter.  Yield measured as pence per RPK increased by 6.0 per cent.

Cargo revenue was up 11.6 per cent compared with last year, with yields up 7.2
per cent and increased volumes, measured in cargo tonne kilometers (CTKs), up
4.1 per cent.  The flying programme was 3.7 per cent larger in available tonne
kilometers (ATKs).

Total costs were up by 11.8 per cent.  The rise was largely driven by a 44 per
cent increase in the cost of fuel and a 7 per cent increase in employee costs
due to increased pension costs, severance and pay awards only partially offset
by manpower reductions.  Unit costs were up 7.9 per cent in the same period.

                                         ends

August 4, 2006                         066/KG/06

Note to editors:

  • British Airways has historically reported passenger and cargo revenue and
    related yield figures excluding fuel surcharges.  They are now reported
    including fuel surcharges.

A conference call to city analysts can be accessed via the internet
www.bashares.com - on Friday, August 4 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 2006.


                      This information is provided by RNS
            The company news service from the London Stock Exchange