US GAAP financial information

British Airways PLC
02 August 2004

Filing on Form 6K dated August 2, 2004

British Airways Plc - US GAAP financial information

This announcement relates to the British Airways ('BA') US GAAP information
only, and does not affect BA's audited UK annual financial statements.

Pursuant to the U.S. Securities Exchange Act of 1934 BA has today filed its year
ended March 31, 2004 Annual Report on Form 20-F with the U.S. Securities and
Exchange Commission ('SEC').

As an SEC registrant BA is required to furnish financial statements for the same
fiscal years and audit reports that would be required to be furnished if the
annual report were on Form 10-K. These financial statements disclose information
substantially similar to financial statements that comply with U.S Generally
Accepted Accounting Principles ('US GAAP') and SEC Regulation S-X. However, such
information may be prepared according to a comprehensive body of accounting
principles other than US GAAP with income and equity reconciled to US GAAP and
audited in accordance with US Generally Accepted Auditing Standards ('US GAAS').
Accordingly, BA's financial statements are prepared in accordance with UK
Generally Accepted Accounting Principles ('UK GAAP') with income and equity
reconciled to US GAAP.

This year, in the preparation and finalisation of BA's Form 20-F it has restated
the US GAAP reconciliation of shareholders' equity previously reported as
supplementary financial information in the UK annual report and accounts,
principally in relation to post employment obligations.

When analyzed in accordance with the provisions of US GAAP Statement of
Financial Accounting Standards No. 87 Employers' Accounting for Pensions BA's
New Airways Pension Scheme ('NAPS') has an accumulated benefit obligation in
excess of the fair value of the related plan assets. Where a pension plan has an
unfunded accumulated benefit obligation, US GAAP requires that such an amount be
recognised as a liability in the statement of financial position. The adjustment
resulting from the recognition of any such minimum liability is reported as an
intangible asset to the extent of unrecognised prior service cost with the
remaining amount reported in other comprehensive income within equity.

The main effect has been to add a new reconciling item when reconciling between
UK GAAP and US GAAP, the impact of which has been to reduce US GAAP net equity
by £607 million at March 31, 2004 and by £296 million at March 31, 2003. The
gross amount required to recognise the Company's minimum liability was included
in the Additional information required by US GAAP in respect of the Group's two
principal pension plans section of Note 45 to the Financial Statements
(Differences between UK and US GAAP) in the Annual Report on Form 20-F for
fiscal year 2003.

There is no effect on US GAAP net income or cash flows for either fiscal year
2004 or 2003.

The UK GAAP financial statements are prepared under SSAP 24. The pension funding
position under FRS 17 is detailed in Note 34 to the UK Annual Report and
Accounts. The FRS 17 funding position is prepared using similar, but not
identical, principles to US GAAP. On an FRS 17 basis, the deficit disclosed in
the UK GAAP Accounts for the fiscal year 2004 in respect of the Group's two
principal pension plans was £1,067 million.

There is no effect on BA's UK GAAP financial statements.


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