Traffic & capacity statistics

British Airways PLC
03 September 2004

TRAFFIC AND CAPACITY STATISTICS - August 2004

Summary of the headline figures

In August 2004, passenger capacity, measured in Available Seat Kilometres, was 2
per cent above August 2003 and traffic, measured in Revenue Passenger
Kilometres, was higher by 2.3 per cent.  This resulted in a passenger load
factor up 0.3 points versus last year, to 77.7 per cent.  The increase in
traffic comprised a 5 per cent increase in premium traffic and a 1.9 per cent
increase in non-premium traffic.  Cargo, measured in Cargo Tonne Kilometres,
rose by 19.3 per cent.   Overall load factor rose by 1.9 points to 71.5 per
cent.

Market conditions

Market conditions remain unchanged.  Longhaul premium volumes are recovering
steadily, while shorthaul premium travel remains at lower levels.  Non-premium
volumes are very price-sensitive. Revenue is still expected to be some 2-3 per
cent higher in this financial year

Strategic Developments

In August the airline suffered operational disruptions due to a number of
causes, including staff shortages, bad weather, runway closures, technical
problems with aircraft and baggage system failures. This resulted in the
cancellation of some 1 per cent of the scheduled ASKs in the month. Operations
recovered by the Bank Holiday weekend when some 225,000 passengers departed
Heathrow, slightly up on the previous year.

Following agreement on a three year pay deal with unions representing baggage
handlers, check-in agents and ground staff, the TGWU and GMB called off planned
industrial action for the August Bank Holiday weekend. The company has agreed a
back-dated (October 2003) RPI pay increase over three years and non pensionable
lump sum payments between now and September 2006. The agreement of the unions,
which also includes Amicus, is subject to consultation with their members.
Agreement on the same pay deal has also been reached with the Engineering
Negotiating Forum, subject to consultation with their members, and the pay offer
has also been put to the pilots and they, too, are in the process of consulting.
The agreement follows an acceptance by the unions of a robust absence policy.
The policy targets a reduction in current absence from an average of 17 days per
employee down to 10 days within 12 months.

At the end of last month British Airways announced an Employee Reward plan for
all staff linked to achieving a 10 percent operating margin.

The Australian Competition and Consumer Commission has proposed granting
continued authorisation to the joint services agreement (JSA) between British
Airways and Qantas for a period of 5 years. The JSA covers routes between
Australia and Europe, including services between Australia and intermediate
points such as Bangkok and Singapore.

British Airways' annual autumn long haul sale was announced with more than 1.5
million discounted flight tickets to more than 50 worldwide destinations and
savings of up to £208.  The special World Offer fares are on sale until
September 28 for travel during differing time periods from September 2 through
to June 30 2005.

The airline posted pre-tax profits of £115 million for the first quarter to June
30, 2004. The operating profit was £150 million delivering an operating margin
of 7.8 per cent.

September 3, 2004
                                            082/LG/2004


BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS


                                           Month of August                       Financial year to date
                                                                                 April through August
BRITISH AIRWAYS GROUP                                 Change                                 Change
SCHEDULED SERVICES               2004      2003       (%)              2004      2003        (%)
Passengers carried (000)
UK/Europe                        2170      2234        -2.8            10712     10725        -0.1
Americas                         646       649         -0.5            3250      3113        +4.4
Asia Pacific                     144       135        +7.2             677       534         +27.0
Africa and Middle East           267       250        +6.6             1238      1092        +13.3
Total                            3228      3268        -1.2            15877     15464       +2.7

Revenue passenger km (m)
UK/Europe                        2028      1990       +1.9             9689      9268        +4.5
Americas                         4318      4314       +0.1             21704     20805       +4.3
Asia Pacific                     1476      1415       +4.3             6964      5723        +21.7
Africa and Middle East           1751      1640       +6.8             8196      7302        +12.2
Total                            9573      9359       +2.3             46553     43098       +8.0

Available seat km (m)
UK/Europe                        2706      2685       +0.8             13304     12999       +2.3
Americas                         5420      5503        -1.5            26808     26554       +1.0
Asia Pacific                     2004      1834       +9.3             9695      8527        +13.7
Africa and Middle East           2197      2068       +6.2             11069     10066       +10.0
Total                            12327     12090      +2.0             60877     58147       +4.7

Passenger load factor (%)
UK/Europe                        74.9      74.1       +0.8      pts    72.8      71.3        +1.5         pts
Americas                         79.7      78.4       +1.3      pts    81.0      78.3        +2.7         pts
Asia Pacific                     73.6      77.2        -3.6     pts    71.8      67.1        +4.7         pts
Africa and Middle East           79.7      79.3       +0.4      pts    74.0      72.5        +1.5         pts
Total                            77.7      77.4       +0.3      pts    76.5      74.1        +2.4         pts

Revenue tonne km (RTK) (m)
Cargo tonne km (CTK)             406       341        +19.3            2029      1723        +17.8
Total RTK                        1368      1282       +6.6             6672      6035        +10.5
Available tonne km (m)           1912      1842       +3.8             9502      8907        +6.7

Overall load factor (%)          71.5      69.6       +1.9      pts    70.2      67.8        +2.4         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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