Traffic and Capacity Statistics - December 1999

British Airways PLC
6 January 2000

                                                                      
            TRAFFIC AND CAPACITY STATISTICS - DECEMBER 1999

Summary of the headline figures
In line with the British Airways strategy, December capacity was below
a year ago, premium traffic was higher and non-premium traffic was
lower.  The month's result was also impacted by the reduced demand
during the millennium holiday period.

British Airways mainline scheduled Available Seat Kilometres (ASKs) in
December were 0.5 per cent below December 1998.  Traffic, measured in
Revenue Passenger Kilometres (RPKs), was 6.4 per cent lower, including
35% lower in the Millennium week commencing December 27.  Millennium
travel patterns will also feature in January's results.  Passenger
load factor for December was 3.8 points lower than last year at 61.1
per cent.

Premium traffic rose by 5.2% (December saw last winter's largest
monthly year on year decline in premium traffic of 3.6%), with Club
World the strongest performer.  This reflected successful selling
activity and is expected to continue in the coming months.  Non-
premium traffic fell by 8.1%.  Cargo tonne kilometres rose by 15.3%,
with Asia Pacific traffic continuing to be particularly buoyant.

For the December quarter, passenger load factor for the mainline
scheduled business fell one point to 66.7%, on ASKs up by 0.1%.
Scheduled RPKs fell by 1.4%, with premium traffic up 6.8% and non
premium traffic down 2.8%.

Market conditions
Trading conditions are still competitive.  British Airways has this
week launched its biggest ever promotion of unsold seats, including a
mailing of special fares to 23 million homes and gift vouchers for on-
line bookings.

Costs
Fuel prices continued to rise, with jet kerosene ending the quarter
around 30% higher than the September quarter.  Although most of the
fuel requirement is hedged for this fiscal year, there remains around
10% of the year's requirement unhedged and exposed to these movements
in the fuel price.

The yen continued to strengthen against sterling.  At the end of
December, the value of the yen stood at Yen 165.20 to the pound,
compared to Yen 175.70 at the end of September 1999.  The Group will
therefore have a non-cash accounting charge of £50 million in the
third quarter financial results.

Strategic developments
British Airways concluded the agreements for it to acquire a 9% stake
in Iberia Aereas de Espana SA. The value of the investment will be in
the region of £155 million (Ptas 41 billion). If the value of the
shares in Iberia offered through its public flotation is less, the sum
paid by British Airways will be reduced accordingly. The oneworld
partner American Airlines will take a 1% holding in Iberia.

As foreshadowed last month, Aer Lingus became the ninth member of the
oneworld alliance. This followed the signature of a co-operative
agreement between British Airways and Aer Lingus to codeshare on 14
routes across the Irish Sea and to eight continental European
destinations.

Other highlights
British Airways completed the sale of a second tranche of 1.1 million
shares in Equant.  This raised £58 million after costs, and resulted
in a £58 million book profit which will be recognised in the 3rd
quarter financial results.  Following this sale, British Airways
remains the beneficial owner of 2.1 million shares in Equant.

British Airways announced the doubling of hand baggage allowances on
Club World, effective from 3 January.  The maximum allowance will now
be 18 kg, to be split between two separate items such as a garment
bag/suit carrier and a computer or brief case.

The Millennium change passed without incident.  Although schedules
were significantly reduced to reflect reduced demand, British Airways
had 15 flights in the air at midnight on 31 December.

The British Airways London Eye was opened by the Prime Minister on 31
December. It will carry its first fare-paying passengers on schedule,
at the end of January.

January 6, 2000

                       Month of December    Financial year to date       
                                                  April through        
                                                 December
                                                
BRITISH AIRWAYS                   Change                  Change   
MAINLINE                                                  
SCHEDULED SERVICES   1999    1998  (%)      1999   1998   (%)   
                                                                
Passengers carried(000)                                              
UK/Europe            1539    1642  -6.3     18007  18528  -2.8   
Intercontinental      945    1008  -6.3     10258  10223  +0.3   
Total                2485    2651  -6.3     28265  28752  -1.7   
                                   
                                                                
Revenue passenger km (m)                                               
UK/Europe            1383    1450  -4.6     16346  16725  -2.3   
Intercontinental     6864    7361  -6.7     74314  74270  +0.1   
Total                8247    8811  -6.4     90660  90995  -0.4   
                                   
                                                                
Available seat km(m)                                               
UK/Europe            2561    2579  -0.7     25040  24702  +1.4   
Intercontinental    10946   10995  -0.4    102605 101986  +0.6   
Total               13507   13574  -0.5    127644 126688  +0.8   
                                  
                                                                
Passenger load factor (%)                                                 
UK/Europe            54.0    56.2  -2.2pts    65.3  67.7  -2.4pts
Intercontinental     62.7    66.9  -4.2pts    72.4   72.8 -0.4 pts
Total                61.1    64.9  -3.8pts    71.0   71.8 -0.8 pts
                                                          
Revenue tonne km (RTK) (m)                                                
Cargo tonne km (CTK)  412     358 +15.3      3423   3257  +5.1   
Total RTK            1241    1243  -0.1     12459  12334  +1.0   
Available tonne km   1968    1953  +0.8     18516  18139  +2.1   
(m)
                                                                
Overall load         63.1    63.6  -0.5pts   67.3   68.0  -0.7pts
factor (%)                                              
                                                                
                                                                
TOTAL GROUP SCHEDULED                                              
SERVICES
including Deutsche BA, Air Liberte, Cityflyer Express)                        
                
Passengers carried   3176    3198  -0.7     33717  33762  -0.1   
(000)                              
Revenue passenger    8833    9310  -5.1     95496  95380  +0.1   
km (m)                             
Available seat km   14402   14316  +0.6    134863 133436  +1.1   
(m)
Total RTK (m)        1300    1292  +0.6     12946  12782  +1.3   
Available tonne km   2054    2025  +1.4     19209  18794  +2.2   
(m)

                                                       Shareholder Value
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