Traffic&capacity stats - May

British Airways PLC
04 June 2003

TRAFFIC AND CAPACITY STATISTICS - May 2003

Summary of the headline figures

In May 2003, overall load factor rose 3.2 points to 66.7 per cent. Passenger
capacity, measured in Available Seat Kilometres, was 1.5 per cent below May 2002
and traffic, measured in Revenue Passenger Kilometres, was higher by 2.1 per
cent. This resulted in a passenger load factor up 2.5 points versus last year,
to 69.4 per cent. The increase in traffic comprised a 9.1% per cent reduction in
premium traffic and a 4.4 per cent increase in non-premium traffic. Cargo,
measured in Cargo Tonne Kilometres, rose by 3.4 per cent.

Market conditions

Passenger numbers and traffic were up this month, driven principally by post war
pent up demand and promotional campaigns. Yields continue to be under pressure
from price discounting and down trading across all areas. Forward visibility on
revenue and traffic remains limited with considerable volatility in booking
levels.

Strategic Developments

British Airways signed an agreement to sell its wholly owned German subsidiary
dba (formerly Deutsche BA) to Intro Verwaltungsgesellschaft mbH, the
Nuremburg-based aviation consultancy and investment company.

Intro will buy the entire share capital of dba for euro 1. As part of the
transaction, British Airways will invest £25 million (euro 35 million) in dba
and will also underwrite the German carrier's fleet of 16 aircraft for one year,
at a cost of £2 million (euro 3 million) per month. In exchange, British Airways
will receive 25 per cent of any dba profits, or 25 per cent of any profit on
disposal of dba, up to June 2006.

The US Department of Transportation gave final approval to the British Airways
and American Airlines codesharing application on destinations beyond British
Airways' US gateway cities and American Airline's UK gateways. The move marks a
significant milestone in the relationship which will allow greater access to
more online destinations, improve transfer and check-in processes.

British Airways posted a pre-tax profit of £135 million (2002: £200 million
loss) for the full year to March 31, 2003. There was a pre-tax loss for the
fourth quarter of £200 million (2002: £85 million loss). The operating profit
for the full year was £295 million including an £84 million exceptional
operating charge relating to Concorde. The operating loss for the fourth quarter
was £164 million, £119 million worse than last year.

In its response to the government's consultation on airport infrastructure, BA
called for a new short runway to be built at London Heathrow airport to give
Britain maximum economic benefit from an effective international hub airport
that would boost the UK economy by £37 billion. It would also create additional
capacity to provide better air links for regions throughout the UK.

British Airways announced the withdrawal of services between Guernsey and London
Gatwick airport from 16 June 2003. The services will be continued by Aurigny Air
Services who will begin flying on the route the day after the British Airways'
service ceases. British Airways' decision to withdraw from Guernsey has been
made because the 66-seater ATR 72 aircraft which operate on the route will be
retired and returned to its leasing company this summer.

British Airways announced the withdrawal of its services to Plymouth and Newquay
from London Gatwick and Bristol airports from 25 October 2003. The three times a
day Plymouth to Newcastle service will also be withdrawn and the Dash 8 fleet
move to Manchester.

                                      ends

June 4, 2003 067/CW/03
                                BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS
                                             Month of May                               Financial year to date
                                                                                            April through May
BRITISH AIRWAYS GROUP                                         Change                                        Change
SCHEDULED SERVICES                      2003         2002        (%)               2003            2002        (%)
Passengers carried (000)
UK/Europe                               2293         2301       -0.4               4520            4511       +0.2
Americas                                 583          542       +7.5               1140            1077       +5.9
Asia Pacific                              80          119      -33.1                170             243      -30.2
Africa and Middle East                   200          181      +10.1                385             387       -0.5
Total                                   3155         3144       +0.3               6214            6217       -0.0
Revenue passenger km (m)
UK/Europe                               1870         1799       +4.0               3651            3519       +3.8
Americas                                3917         3637       +7.7               7683            7259       +5.8
Asia Pacific                             880         1214      -27.5               1867            2480      -24.7
Africa and Middle East                  1355         1205      +12.5               2659            2588       +2.7
Total                                   8023         7855       +2.1              15860           15846       +0.1
Available seat km (m)
UK/Europe                               2837         2686       +5.6               5566            5324       +4.5
Americas                                5147         5343       -3.7              10200           10542       -3.2
Asia Pacific                            1595         1735       -8.1               3231            3375       -4.3
Africa and Middle East                  1984         1975       +0.4               3927            4008       -2.0
Total                                  11564        11740       -1.5              22925           23249       -1.4
Passenger load factor (%)
UK/Europe                               65.9         67.0       -1.1 pts           65.6            66.1       -0.5 pts
Americas                                76.1         68.1       +8.0 pts           75.3            68.9       +6.4 pts
Asia Pacific                            55.2         69.9      -14.7 pts           57.8            73.5      -15.7 pts
Africa and Middle East                  68.3         61.0       +7.3 pts           67.7            64.6       +3.1 pts
Total                                   69.4         66.9       +2.5 pts           69.2            68.2       +1.0 pts
Revenue tonne km (RTK) (m)
Cargo tonne km (CTK)                     375          363       +3.4                706             695       +1.6
Total RTK                               1175         1145       +2.6               2285            2272       +0.6
Available tonne km (m)                  1761         1804       -2.4               3483            3570       -2.4
Overall load factor (%)                 66.7         63.5       +3.2 pts           65.6            63.6       +2.0 pts

Certain information included in this statement is forward-looking and involves
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 'Future Size and Shape' programme, expected future revenues,
financing plans and expected 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. Information on some
factors which could result in material difference to the results is available in
the Company's SEC filings, including, without limitation the Company's Report on
Form 20-F for the year ended March 2002.

                                                              Investor Relations

                                                                Waterside (HCB3)

                                                                      PO Box 365

                                                                   Harmondsworth

                                                                         UB7 OGB

                                                       Tel: [phone]

                                                       Fax: [phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange