September traffic statistics

British Airways PLC
04 October 2006


TRAFFIC AND CAPACITY STATISTICS - September 2006


Summary of the headline figures

In September 2006, passenger capacity, measured in Available Seat Kilometres,
was 2.5 per cent above September 2005.  Traffic, measured in Revenue Passenger
Kilometres, was higher by 1.5 per cent.  This resulted in a passenger load
factor down 0.8 points versus last year, to 78.8 per cent.  The increase in
traffic comprised a 1.5 per cent increase in premium traffic and a 1.5 per cent
increase in non-premium traffic.  Cargo, measured in Cargo Tonne Kilometres,
decreased by 5.2 per cent.   Overall load factor increased by 0.8 points to 73
per cent.

For the July to September quarter, ASKs rose by 3.5 per cent, with RPKs rising
by 3.6 per cent.  This resulted in an increase in passenger load factor of 0.1
points, to 79.7 per cent.  This comprised a 6.5 per cent increase in premium
traffic and a 3.1 per cent increase in non-premium traffic.  CTKs fell by 1.1
per cent.


Market conditions

Market conditions continue to be good, and most segments of the business are
recovering well from the events of August. However, as expected, September
transfer traffic volumes, in particular in the premium cabins, were affected by
carry on baggage restrictions. Volume in premium shorthaul also continues to be
soft for the same reason. The reintroduction of standard carry on bag sizes
agreed at the end of the month, and harmonization of rules on liquids planned
for the end of October are expected to support the gradual recovery of these
segments of the business. As a result of the volume shortfall total revenue is
now expected to grow at 5-6% for the financial year, down from 6-7%.


Costs

After the recent major falls in the fuel price the cost of fuel is now expected
to be some £450 million higher than last year, down from our previous forecast
of  £550-600 million.


Strategic Developments

The airline announced that the actuarial deficit in its New Airways Pension
Scheme (NAPS) is set to rise from £928 million to some £2.1 billion, despite a
doubling of BA's contributions and a recovery of the stock market.  The trustees
confirmed that annual contributions at the unsustainable level of £497 million
would be needed to fund the scheme unless changes to future benefits proposed
earlier this year are introduced.  This means the company's contributions would
go up from five to 12 times members' contributions.

Negotiations between British Airways and the trustees are now underway to agree
a funding plan including proposed benefit changes.  Consultation continues with
the trades unions.

British Airways urged the Civil Aviation Authority to cut the profits BAA
receives from its asset base to ensure that the airport operator builds
cost-effective facilities that generate additional airport capacity.  The CAA is
currently consulting on the level of user charges at Heathrow, Gatwick and
Stansted airports for a five year period from April 2008, in its role as an
economic regulator.

During the current charging period between April 2003 and March 2008, BAA
receives a 7.75 per cent return on it asset base. British Airways said this
should be set at around 5.6 per cent in the next charging period, a reduction of
almost one third.

It was announced that James A Lawrence will be joining the board as a
non-executive director with effect from 1 November, 2006.  He is currently vice
chairman and chief financial officer of General Mills Inc. one of the largest
food companies in North America.  His range of experience covers strategic
consultancy, leading US multi-nationals in consumer products and the US airline
industry.

                                      ends


October 4, 2006                                                   102/KG/06


                         BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS

                                          Month of  September                     Financial year
                                                                               April through to Sep
BRITISH AIRWAYS                                        Change                                  Change
SCHEDULED SERVICES                  2006       2005       (%)            2006        2005         (%)
Passengers carried (000)
UK/Europe                           2156       2132      +1.1           12701       12566        +1.1
Americas                             639        648      -1.3            4068        3910        +4.0
Asia Pacific                         166        173      -4.1             965         938        +2.9
Africa and Middle East               285        257     +11.0            1704        1466       +16.3
Total                               3246       3210      +1.1           19439       18880        +3.0

Revenue passenger km (m)
UK/Europe                           2070       2005      +3.2           12128       11797        +2.8
Americas                            4316       4354      -0.9           27418       26252        +4.4
Asia Pacific                        1701       1776      -4.2            9817        9642        +1.8
Africa and Middle East              1910       1714     +11.4           11331        9805       +15.6
Total                               9997       9850      +1.5           60694       57496        +5.6

Available seat km (m)
UK/Europe                           2652       2738      -3.1           16039       16515        -2.9
Americas                            5599       5342      +4.8           33824       32193        +5.1
Asia Pacific                        2030       2169      -6.4           12344       12611        -2.1
Africa and Middle East              2403       2122     +13.2           14642       12727       +15.0
Total                              12683      12372      +2.5           76849       74047        +3.8

Passenger load factor (%)
UK/Europe                           78.0       73.2      +4.8 pts        75.6        71.4        +4.2 pts
Americas                            77.1       81.5      -4.4 pts        81.1        81.5        -0.4 pts
Asia Pacific                        83.8       81.9      +1.9 pts        79.5        76.5        +3.0 pts
Africa and Middle East              79.5       80.8      -1.3 pts        77.4        77.0        +0.4 pts
Total                               78.8       79.6      -0.8 pts        79.0        77.6        +1.4 pts

Revenue tonne km (RTK) (m)
Cargo tonne km (CTK)                 392        414      -5.2            2401        2370        +1.3
Total RTK                           1417       1397      +1.4            8507        8105        +5.0
Available tonne km (m)              1941       1934      +0.4           11850       11557        +2.5

Overall load factor (%)             73.0       72.2      +0.8 pts        71.8        70.1        +1.7 pts


Certain statements included in this statement may be forward-looking and may
involve 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 business and financing plans, expected future revenues and
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.

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