Traffic & Capacity Stats-Aug

British Airways PLC
5 September 2000

                                                                
          TRAFFIC AND CAPACITY STATISTICS - AUGUST 2000

Summary of the headline figures
Traffic and capacity continued the trend seen in recent months.
Capacity, measured in Available Seat Kilometres, fell by 2.6 per
cent in August. Traffic, measured in Revenue Passenger
Kilometres, fell by 1.0 per cent comprising a 7.3 per cent
growth in premium traffic and a 2.1 per cent decline in non-
premium traffic. Passenger load factor rose 1.2 points to 77.7
per cent. This is the strongest August mainline load factor for
four years. Cargo continued to improve with a 10.4 per cent
increase in Cargo Tonne Kilometres.

Market conditions
Trading through the summer has been very satisfactory, with load
factors hitting levels not seen for several years.

Costs
Fuel prices have continued to rise and sterling has continued to
weaken against the US dollar. Consequently, fuel and oil costs
for the current financial year are currently expected to be
around £270 million higher than in the previous financial year.
Although this is some £50 million higher than the last forecast,
it is expected this additional cost will be largely offset by
favourable revenue developments.

Strategic developments
British  Airways  and  KLM extended the exclusivity  period  for
their talks about a possible combination of their businesses.

The   roll-out  of  new  '21st  Century  air  travel'   products
continues. New Club World flying beds are now available  on  the
Hong  Kong route. The seats have been well-received by customers
on  the  London Heathrow - New York JFK route, with  significant
rises in customer satisfaction ratings for cabin crew, catering,
sleep, privacy, comfort and space.

World  Traveller  Plus,  British  Airways'  new  cabin  situated
between  World  Traveller and Club World,  opened  for  sale  on
August  7,  for travel from October 29. Currently,  tickets  are
available for services between London Heathrow and New York JFK,
Hong Kong and San Francisco.

British  Airways announced a number of changes  for  its  Winter
2000  schedule.  In shorthaul operations out of Heathrow,  there
are frequency increases for services to Paris Charles de Gaulle,
Prague,  Bologna,  Rome and Munich. In addition,  all  Tel  Aviv
services will now operate from Heathrow and will benefit from an
increase  in frequency from 10 per week to 17 per week. Services
to  Jersey,  Venice  and Bilbao from London will  transfer  from
Heathrow  to  Gatwick.  At Gatwick, frequencies  to  Venice  and
Barcelona increase. Service reductions include Heathrow -  Paris
Orly  (reduced  from six per day to three per  day),  Gatwick  -
Verona  (three to two per day) and Gatwick - Genoa (from two  to
one  per  day). Operations from London to Ljubljana and Salzburg
will  cease.  Longhaul  changes include  London  -  Johannesburg
becoming a double daily operation, with the addition of an extra
weekly  flight. A fourth weekly service to Nassau is added,  and
services  to  Kuala  Lumpur  reduce by  one  frequency  to  five
services per week.

British  Airways cancelled all Concorde operations in the  light
of  new  information  received  by regulatory  authorities  from
investigations  into  the  cause  of  the  Air  France  Concorde
accident. British Airways remains optimistic that services  will
resume at some point.

As a result of the suspension of Concorde operations, extra Club
World capacity will be offered on the London Heathrow - New York
JFK route from mid-September. On two daily services, an extra 32
new Club World seats will be available.

September 5, 2000


BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS

                            Month of August      Financial year to date
                                                 April through August
BRITISH AIRWAYS MAINLINE          Change               Change

SCHEDULED SERVICES   2000   1999  (%)      2000  1999  (%)

Passengers carried (000)

UK/Europe            2157   2167   -0.5    10496 10505  -0.1
Americas             790    810    -2.5     3844  3832  +0.3
Asia Pacific         191    205    -6.5      947   942  +0.5
Africa & Middle East 288    264     +9.2     1242  1154 +7.7
Total                3427   3446   -0.6    16528 16432  +0.6

Revenue passenger km (m)

UK/Europe            1988   2023   -1.7     9566  9611  -0.5
Americas             5409   5549   -2.5    26236 26154  +0.3
Asia Pacific         1877   1977   -5.1     9222  9076  +1.6
Africa & Middle East 1854  1698    +9.2     8093  7493  +8.0
Total                11129  11247  -1.0    53118 52333  +1.5

Available seat km (m)

UK/Europe            2797   2907   -3.8    13687 14113  -3.0
Americas             6654   6970   -4.5    33112 33946  -2.5
Asia Pacific         2353   2469   -4.7    12101 12181  -0.7
Africa & Middle East 2513  2348    +7.0    12265 11554  +6.2
Total                14317  14695  -2.6    71166 71795  -0.9

Passenger load factor (%)

UK/Europe            71.1   69.6  +1.5 pts 69.9  68.1  +1.8  pts
Americas             81.3   79.6  +1.7 pts 79.2  77.0  +2.2  pts
Asia Pacific         79.8   80.1  -0.3 pts 76.2  74.5  +1.7  pts
Africa & Middle East 73.8   72.3  +1.5 pts 66.0  64.8  +1.2  pts
Total                77.7   76.5  +1.2 pts 74.6  72.9  +1.7  pts

Revenue tonne km (RTK) (m)

Cargo tonne km (CTK) 402    364   +10.4    2016  1772  +13.8
Total RTK            1522   1488  +2.3     7333  6986  +5.0
Available tonne km(m)2125   2120  +0.2    10492 10348  +1.4
Overall load factor(%)71.6  70.2  +1.4 pts 69.9  67.5  +2.4  pts

NON-MAINLINE SERVICES

Passengers carried (000)    
                      689   792   -13.0    3302  3597  -8.2
Revenue passenger km(m)568  835   -32.1    2551  3467  -26.4
Available seat km (m) 800  1118   -28.4    3766  5165  -27.1
Revenue tonne km (RTK) (000)      
                       54    84   -35.6     236   344  -31.4
Available tonne km (ATK) (000)   
                       82   108   -24.1     386   499  -22.7

TOTAL GROUP SCHEDULED SERVICES
(including Deutsche BA, Go, Air Liberte (1999) & Cityflyer
Express w.e.f. 5.11.1999 for vlys)

Passengers carried (000)    
                     4115  4238   -2.9    19830 20029  -1.0
Revenue passenger km(m)
                    11696 12082   -3.2    55669 55801  -0.2
Available seat km (m)       
                    15117 15812   -4.4    74932 76960  -2.6
Total RTK (m)       1576   1571   +0.3     7569  7330  +3.3
Available tonne km (m)
                    2206   2228   -1.0    10878 10847   +.3

                                                   Shareholder Value
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