Statement re Q1 Results

British Airways PLC
6 August 2001



FIRST QUARTER RESULTS MEET EXPECTATIONS

  * Yields up 12.9 per cent in the quarter
  * First quarter pre-tax profit of £40 million
  * Overall passenger capacity down 8.6 per cent
  * Operating profit of £50 million

London, Monday 6, 2001: British Airways today announced a pre-tax profit of £
40 million (2000: loss of £50 million), for the three months to June 30, 2001.

Operating profits for the period were £50 million (2000: £97 million).

Group turnover for the three-month period was down 0.6 per cent, at £2297
million, on a flying programme 8.6 per cent less in available seat kilometres
(ASKs), in line with the group strategy. Traffic volumes, measured in RPKs,
fell by 11.3 per cent.

Yields were up a substantial 12.9 per cent in the quarter, demonstrating the
continued success of the airline's business strategy. Total costs rose by 1.5
per cent, while unit costs were up 7.8 per cent primarily reflecting fuel and
exchange rate impact, and the reduction in capacity.

The implementation of our product, network and fleet strategy, which is
driving the yield improvement, is on track. All short haul product embodiment
is complete and, by spring 2002, we expect to offer the full range of new
products on 75 per cent of our long haul services. Meanwhile, the Club World
flat bed continues to deliver increased market share.

Exceptionals for the period included proceeds of £100 million from the sale of
Go.

Rod Eddington, British Airways' Chief Executive, said: 'The encouraging yield
performance shows that our strategy is serving us well and, equally important,
is helping us face the difficult market conditions. Improvements to our core
business remain our key focus whilst we look to progress our relationship with
American Airlines.'

Lord Marshall, British Airways' Chairman, said: 'We are committed to driving
forward our strategy. Strengthening our alliances is a fundamental element of
this and we will work closely with the regulatory authorities to secure the
necessary approvals for our deeper relationship with American Airlines.'

Notes to Editors

  * A webcast of British Airways' conference call to city analysts can be
    accessed via the internet - www.bashares.com - on Monday 6 August at 1400
    (BST).



For more information, please contact:

Louise Evans          British Airways          Tel: [phone]

Sara Musgrave         British Airways          Tel: [phone]