Traffic and Capacity Statistics - January 2000

British Airways PLC
3 February 2000

     TRAFFIC AND CAPACITY STATISTICS - JANUARY 2000

Summary of the headline figures
In line with British Airways strategy, January capacity
was below that of a year ago, premium traffic was higher
and non-premium traffic lower. Premium traffic rose by
5.2% with all brands performing strongly. Non-premium
traffic fell by 7.1%.

British Airways mainline scheduled Available Seat
Kilometres (ASKs) in January were 1.3 per cent lower than
January 1999. Traffic, measured in Revenue Passenger
Kilometres (RPKs), was 5.5 per cent lower. This reflected
in particular the weakness of traffic at the end of the
Millennium holiday period. Passenger load factor for
January was 2.7 points lower than last year at 60.9 per
cent. Cargo tonne kilometres rose by 6.7%.

Market conditions
Trading conditions continue to be challenging. Excess
capacity on the North Atlantic continues, and the
weakness of the euro is depressing European fares.
However, the continuing growth in premium traffic
relative to non-premium traffic is encouraging and the
mix effect will offset pricing pressure. Bookings from
the sales promotion launched in January will help to
mitigate the impact of subdued bookings towards the end
of the current quarter.

Costs
British Airways announced plans for fundamental change to
the way the airline works with UK travel agents following
extensive consultation with agents and customers. The
current standard seven per cent commission payment will
be replaced by a fee based structure, with charges paid
for the basic service of making a booking, issuing travel
documents and collecting the fare. Agents will be free to
charge additional fees for any other services which
customers require such as dedicated service desks and
travel policy advice. Some fares will be adjusted to take
this new scheme into account.

In the light of the continued high fuel price, British
Airways has followed the lead of several US carriers by
raising premium fares and most economy fares across the
North Atlantic by 3% effective from February 1.

At the recent product launch, Chief Executive Bob Ayling
said that he was targeting further cost reductions of 12%
by March 31, 2003

Strategic developments
British Airways presented its new products and announced
the introduction of a new cabin class, World Traveller
Plus. This cabin will offer more space and facilities
than World Traveller for a premium to the full World
Traveller fare. The Club World 'Lounge in the Sky' will
feature the world's first fully flat bed for business
class travellers who need to work and sleep in private on
longhaul trips. The new Club World product enters service
from this week and services between London and New York
JFK will be fully embodied with both Club World and World
Traveller Plus by Summer 2000.

British Airways took delivery of its first two Boeing 777
Extended Range aircraft, commencing the next stage of
implementing the strategy of smaller, more profitable
aircraft.

British Airways completed the purchase of an 18.3 per
cent shareholding in Comair, its franchise partner in
Southern Africa. The £17 million (R168 million)
investment marks a further cementing of the successful
relationship between the two airlines, which began in
October 1996 when Comair became British Airways' first
franchise outside Europe.

British Airways agreed to sell Galileo UK to Galileo
International Inc. Galileo UK distributes Galileo systems
to travel agents across the UK.

Other highlights
British Airways launched the world's first commercial
interactive TV service offered by an airline. The service
will appear within the interactive TV travel sections of
the UK cable companies Cable & Wireless Communications,
ntl and Telewest. More than 60,000 customers in the North
West are already enjoying the world's first digital
interactive cable service with Cable & Wireless
Communications. The technology is now being developed to
allow for full e-commerce, with on line booking planned
for this year.

February 3, 2000

   BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
                                                                
                                                                
                           Month of January      Financial year to  
                                                 date                         

                                                 April through
                                                 January
BRITISH AIRWAYS                  Change                   Change
MAINLINE                                                  
SCHEDULED SERVICES   2000   1999   (%)   1999/2000 1998/1999 (%)   
                                                                
Passengers carried (000)                                             
UK/Europe            1492   1570  -5.0     19501   20099  -3.0   
Intercontinental      945   1002  -5.7     11203   11225  -0.2   
Total                2437   2572  -5.3     30704   31324  -2.0   
                                                                
Revenue passenger km (m)                                             
UK/Europe            1327   1401  -5.3     17675   17718  -0.2   
Intercontinental     7028   7437  -5.5     81349   82114  -0.9   
Total                8354   8838  -5.5     99024   99832  -0.8   
                                                                
Available seat km (m)                                              
UK/Europe            2714   2732  -0.6     27750   27842  -0.3   
Intercontinental    11006  11175  -1.5    113594  112749 +0.7   
Total               13720  13906  -1.3    141345  140591 +0.5   
                                                                
Passenger load factor (%)                                                 
UK/Europe            48.9   51.3  -2.4 pts  63.7    63.6 +0.1 pts
Intercontinental     63.9   66.6  -2.7 pts  71.6    72.8  -1.2 pts
Total                60.9   63.6  -2.7 pts  70.1    71.0  -0.9 pts
                                                                
Revenue tonne km (RTK) (m)                                                
Cargo tonne km (CTK)  341    320  +6.7      3761    3576 +5.2   
Total RTK            1186   1210  -2.0     13642   13543 +0.7   
Available tonne km(m)1964   1996  -1.6     20485   20140 +1.7   
                                                           
Overall load         60.4   60.6  -0.2 pts 66.6    67.2  -0.6 pts
factor (%)                                                                
                                                                
TOTAL GROUP SCHEDULED                                             
SERVICES
(including Deutsche BA, Air Liberte and Cityflyer Express wef 5.11.1999,)
Passengers carried   3065   3080  -0.5     36784   36842  -0.2   
(000)
Revenue passenger    8962   9365  -4.3    104468  104744  -0.3   
km (m)
Available seat km(m)14672  14701  -0.2    149516  148134 +0.9   
Total RTK (m)        1246   1264  -1.4     14190   14045 +1.0   
Available tonne km(m)2055   2073  -0.9     21271   20871 +1.9   

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