Traffic & Capacity Stats-July

BRITISH AIRWAYS PLC
4 August 1999

                                                        
   TRAFFIC AND CAPACITY STATISTICS - JULY 1999

Mainline scheduled capacity growth, measured in
Available Seat Kilometres (ASKs), continued to be low.
July ASKs grew by 0.8 per cent (March +10.5 per cent,
April +4.5 per cent, May +2.4 per cent, June +0.6%).

July traffic, measured in Revenue Passenger Kilometres
(RPKs) grew by 2.5 per cent.  Premium traffic was up
3.2%, strongly supported by the B A Popular Person
offer.  Club Europe continues to be the weakest
performer.  Growth in the non-premium cabins was 2.4 per
cent.  The passenger load factor rose by 1.2 points to
76.8 per cent.

The B A Popular Person promotion, which ran from late
May to the end of July and allowed premium cabin
travellers to gain a free companion seat on the next
occasion they travelled, has been very successful in
attracting premium traffic.  Redemption of these tickets
has begun and this is certainly the significant factor
in the increase in premium traffic this month.

Traffic trends continue to be difficult to forecast as
excess capacity increases the availability of seats
close to the departure date making forward bookings data
less reliable.  Excess capacity in the industry remains
and there is no reason to expect the intense pressure on
yields to ease in the near term with many carriers
offering seat sales through the peak summer season.
Yields on the North Atlantic have been particularly
cited by competitors.  Some have indicated double digit
yield declines. Over 40 per cent of British Airways'
mainline traffic is flown on these routes.
                            
                 HIGHLIGHTS OF THE MONTH

British Airways and American Airlines have re-affirmed
their commitment to developing further their alliance,
despite the disappointment of the US Department of
Transportation's rejection of their application for anti-
trust immunity for joint venture operations on North
Atlantic routes.  Both airlines envisage many
opportunities to broaden the alliance in ways which do
not require anti-trust immunity, both jointly and
through the existing oneworldT alliance - which was
developed without the need for regulatory immunity on
specific routes.

British Airways welcomed the decision by the Secretary
of State for Trade and Industry to approve the company's
acquisition of Gatwick-based CityFlyer Express.  The
airline will now discuss with the Director General of
Fair Trading the right level for the hourly cap of
British Airways' slot holding at Gatwick.

British Airways welcomed the Irish Government's
decision to endorse plans for its alliance with Aer
Lingus.  The two airlines plan to code-share
extensively on each others flights and offer
reciprocal benefits and rewards to frequent flyers
of both carriers.  In the longer term both companies
intend to deepen the alliance, co-operating in many
areas.  American Airlines also confirmed that it has
been given the go ahead to form an alliance with the
Dublin-based carrier.
          
British Airways will appeal against the European
Commission ruling against some of the airline's UK
sales arrangements.  The airline believes that its
business practices are no different from other major
industry competitors and satisfy all the various
competition rules that apply in the European Community
and around the world.  The airline said that in its
judgment the pronouncement by the EC is wrong in fact
and in law. It will appeal against the ruling and
strongly believes it will be overturned.

In June, jet fuel prices rose 17.4%; in July this
continued with a further rise of 7.4% to close at US$185
per metric tonnes.  This is the highest level since
1997.  British Airways currently has forward cover in
place for over 50% of its requirement to March 2000.


August 4 , 1999

   BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
                                                                
                       Month of July          Financial year to        
                                                   date
                                              April through July    
                                                  
BRITISH AIRWAYS                  Change                  Change   
MAINLINE                                                   
SCHEDULED SERVICES   1999   1998   (%)      1999    1998  (%)   
                                                                
Passengers carried (000)                                             
UK/Europe            2270   2272  -0.1      8314    8448 -1.6   
Intercontinental     1280   1237  +3.4      4671    4524 +3.2   
Total                3550   3509  +1.2     12985   12972 +0.1   
                                                                
Revenue passenger km (m)                                               
UK/Europe            2088   2076  +0.6      7540    7619 -1.0   
Intercontinental     9211   8951  +2.9     33540   32770 +2.4   
Total               11299  11028  +2.5     41080   40389 +1.7   
                                                                
Available seat km (m)                                              
UK/Europe            2872   2812  +2.1     11119   10826 +2.7   
Intercontinental    11846  11782  +0.5     45983   45175 +1.8   
Total               14718  14594  +0.8     57101   56001 +2.0   
                                                                
Passenger load factor (%)                                                  
UK/Europe            72.7   73.8  -1.1 pts  67.8    70.4  -2.6 pts
Intercontinental     77.8   76.0  +1.8 pts  72.9    72.5  +0.4 pts
Total                76.8   75.6  +1.2 pts  71.9    72.1  -0.2 pts            
                                                                 
Revenue tonne km (RTK) (m)                                                

Cargo tonne km (CTK)  376    361  +4.1      1409    1426  -1.2   
Total RTK            1503   1461  +2.9      5499    5447  +1.0   
Available tonne km(m)2121   2082  +1.8      8225    8010  +2.7   
                                                                
Overall load factor(%)70.9  70.2  +0.7 pts  66.9    68.0  -1.1 pts

                                                               
TOTAL GROUP SCHEDULED
SERVICES
(including Deutsche BA, Air Liberte)
Passengers carried   4138   4080  +1.4     15291   15234  +0.4   
(000)
Revenue passenger   11850  11551  +2.6     43165   42369  +1.9   
km (m)
Available seat km(m)15513  15401  +0.7     60207   59012  +2.0   
Total RTK (m)        1558   1514  +2.9      5709    5648  +1.1   
Available tonne km(m)2197   2160  +1.7      8523    8303  +2.7   

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