Traffic and Capacity Stats

British Airways PLC
5 March 2002





                TRAFFIC AND CAPACITY STATISTICS - FEBRUARY 2002


Summary of the headline figures

Capacity in February, measured in Available Seat Kilometres, was 10.5 per cent
below February 2001. Traffic, measured in Revenue Passenger Kilometres, fell 2.5
per cent. The reduction in traffic comprised a 7.8 per cent decline in premium
traffic and a 1.4 per cent fall in non-premium traffic. Passenger load factor of
71.7 per cent was up 5.9 points on February 2001. Cargo, measured in Cargo Tonne
Kilometres, fell by 9.0 per cent.


Market conditions

Traffic improvements have continued in February. The seat factor of 71.6% is the
highest in ten years for the month of February. While positive, the improvements
have benefited from reduced capacity and continued fare discounting.


Costs

The cost cutting initiatives launched after September 11th and as part of Future
Size and Shape continue. As at January 31st manpower equivalents have reduced by
6,400, since August 2001. Fuel costs are expected to be some 6% lower than last
year due to a smaller flying programme, more fuel efficient aircraft and lower
fuel prices.


Strategic developments

British Airways unveiled a major package of measures designed to return the
airline to profitability, following a wide-ranging analysis of its business led
by chief executive Rod Eddington. The conclusions of the review - known as '
Future Size and Shape' - signal a significant change to the size of British
Airways as it takes further steps to address its cost base and sets the company
on course to achieve a 10 per cent operating margin. This will be supported by
an annualised cost saving of £650 million achieved by March 2004, with £450
million of this secured by the end of the first year (2002 - 2003).

There will be a further 5,800 job losses over the next two years, in addition to
7,200 announced in September 2001. In total, this amounts to a manpower
reduction of 13,000 or 23 per cent of the workforce of 56,700 in August 2001.
Head office and support staff will reduce by more than a third (36 per cent).
The company wants to achieve the manpower reduction by voluntary means and will
work with the trade unions to achieve the target. The airline is making a
provision of £200 million over the next two years for restructuring costs.

British Airways will restructure its European short haul business to provide a
competitive response to the no-frills carriers. This will include a change to
its short haul pricing structure - giving business travellers and holiday makers
lower fares, greater flexibility and more choice - a simpler short haul fleet
and higher aircraft utilisation. The new pricing structure will be rolled out
from June 2002.

British Airways has also taken a major step towards simplifying its business
systems with the introduction of the Amadeus sales system across the airline.
The Amadeus system replaces the British Airways Booking System (BABS) which had
been used for more than 30 years. Introduction of the Amadeus sales system is
the third of five milestones in a strategic partnership between the airline and
Amadeus announced in August 2000. Paul Coby, Chief Information Officer for
British Airways, said: 'The various Amadeus systems we are already using and our
ongoing Partnership with Amadeus and Qantas, will lay the foundations for
world-leading customer facing British Airways' systems in the years to come and
delivers very significant cost benefits.'

The Chief Executives of the eight oneworld member airlines underlined their
commitment to the alliance by accelerating plans to deepen working relationships
between the partners, delivering more benefits for customers and adding more
value for shareholders. Rod Eddington Chief Executive of British Airways,
speaking on behalf of all the Chief Executives, said: 'oneworld is a strong
alliance, providing services that our customers value and generating substantial
cost efficiencies and additional revenue for our members. We are determined to
build on this success, by continuing to work harder and smarter than our rivals,
developing the overall best alliance customer services and products and
generating even more benefits for our members.'



March 5, 2002

BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS


                                            Month of February                      Financial year to date
                                                                                   April through February
BRITISH AIRWAYS GROUP                                          Change                                      Change
SCHEDULED SERVICES                         2002       2001        (%)             2001/2        2000/1        (%)
Passengers carried (000)
UK/Europe                                  1894       1949       -2.8              25151         25634       -1.9
Americas                                    479        497       -3.6               6092          7489      -18.6
Asia Pacific                                147        148       -0.8               1624          1965      -17.3
Africa and Middle East                      217        219       -1.0               2539          2713       -6.4
Total                                      2737       2813       -2.7              35407         37800       -6.3
Revenue passenger km (m)
UK/Europe                                  1462       1561       -6.4              20156         21269       -5.2
Americas                                   3293       3410       -3.5              41666         51202      -18.6
Asia Pacific                               1502       1496       +0.5              16396         19448      -15.7
Africa and Middle East                     1476       1466       +0.7              17191         17942       -4.2
Total                                      7733       7933       -2.5              95410        109862      -13.2
Available seat km (m)
UK/Europe                                  2400       2736      -12.3              32208         33252       -3.1
Americas                                   4534       5177      -12.4              57874         68682      -15.7
Asia Pacific                               1923       1992       -3.5              22408         25324      -11.5
Africa and Middle East                     1950       2166      -10.0              24266         26539       -8.6
Total                                     10806      12071      -10.5             136756        153797      -11.1
Passenger load factor (%)
UK/Europe                                  60.9       57.1       +3.8 pts           62.6          64.0       -1.4 pts
Americas                                   72.6       65.9       +6.7 pts           72.0          74.5       -2.5 pts
Asia Pacific                               78.1       75.1       +3.0 pts           73.2          76.8       -3.6 pts
Africa and Middle East                     75.7       67.7       +8.0 pts           70.8          67.6       +3.2 pts
Total                                      71.6       65.7       +5.9 pts           69.8          71.4       -1.6 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK)                        321        352       -9.0               3658          4354      -16.0
Total RTK                                  1090       1137       -4.1              13195         15328      -13.9
Available tonne km (m)                     1647       1809       -9.0              20786         22686       -8.4
Overall load factor (%)                    66.2       62.8       +3.4 pts           63.5          67.6       -4.1 pts





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