January traffic statistics

British Airways PLC 05 February 2007 TRAFFIC AND CAPACITY STATISTICS - January 2007 Summary of the headline figures In January 2007, passenger capacity, measured in Available Seat Kilometres, was 1.5 per cent above January 2006. Traffic, measured in Revenue Passenger Kilometres, was lower by 2.8 per cent. This resulted in a passenger load factor down 3 points versus last year, to 69.5 per cent. The decrease in traffic comprised a 3.1 per cent decrease in premium traffic and a 2.7 per cent decrease in non-premium traffic. Cargo, measured in Cargo Tonne Kilometres, decreased by 18.1 per cent. Overall load factor fell by 3.2 points to 64.9 per cent. This month's statistics were significantly impacted by the threat of industrial action. Premium volumes suffered the largest reductions as most tickets are flexible and refundable, and customers are easily able to move to other carriers. The ballot result in favour of strike action was announced on January 15 and the strike averted on January 29. Market conditions The market continues to show good demand in premium cabins. The weakness in some non-premium segments is also still a feature. The revenue outlook for the fourth quarter has been impacted by the threat of industrial action by the T&G. While the strike was averted, the estimated revenue loss is still some £80 million. Revenue guidance for the full year is now 3.25 - 3.75% growth. Costs While cost control remains strong, full year costs excluding fuel are expected to be some £50 million higher than last year. This reflects higher costs in the first quarter. Our full year fuel guidance has been revised down by £40 million reflecting the reduction in fuel prices. The fuel bill will now be accounted for on a continuing operations basis, and is expected to be some £1.95 billion. Strategic Developments Following a ballot for industrial action the T&G announced a series of planned strikes. As a result the airline cancelled 1,300 flights over a 48 hour period. While the dispute was averted and the schedule reinstated, supported by a seat sale of 500,000 tickets, the impact on lost bookings and revenue is expected to be some £80 million in the fourth quarter. The BA Forum, which represents British Airways' unions, issued a statement recommending acceptance of changes to benefits to tackle the £2.1 billion deficit in the New Airways Pension Scheme (NAPS). The airline reduced its fuel surcharge on longhaul flights under nine hours by from £35 to £30 per sector as a result of a fall in the price of oil. British Airways announced modifications to its uniform rules to allow staff to wear a symbol of faith openly. The decision came after a comprehensive review of the airline's uniform policy and extensive consultation with a wide range of religious groups including representatives from the Church of England, the Catholic Church and the Muslim Council of Britain. The new policy was introduced on February 1, 2007. The airline announced a new daily service between London Gatwick and Newquay. The flights will start on Monday March 20, 2007 operating on a Boeing 737. ends February 5, 2007 023/KG/07 Note: Traffic statistics will continue to include BA Connect until the transaction is completed. BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS Month of January Financial year April through to Jan BRITISH AIRWAYS Change Change SCHEDULED SERVICES 2007 2006 (%) 2007 2006 (%) Passengers carried (000) UK/Europe 1510 1599 -5.6 19673 19601 +0.4 Americas 542 562 -3.5 6301 6243 +0.9 Asia Pacific 145 166 -12.3 1556 1592 -2.3 Africa and Middle East 333 318 +4.9 2979 2612 +14.1 Total 2531 2644 -4.3 30509 30047 +1.5 Revenue passenger km (m) UK/Europe 1390 1425 -2.5 18608 18113 +2.7 Americas 3686 3795 -2.9 42479 41925 +1.3 Asia Pacific 1499 1727 -13.2 15886 16407 -3.2 Africa and Middle East 2292 2172 +5.6 20062 17654 +13.6 Total 8867 9119 -2.8 97034 94100 +3.1 Available seat km (m) UK/Europe 2526 2532 -0.2 26087 26669 -2.2 Americas 5294 5144 +2.9 54712 52816 +3.6 Asia Pacific 1989 2225 -10.6 20162 21367 -5.6 Africa and Middle East 2946 2670 +10.3 25912 22864 +13.3 Total 12755 12571 +1.5 126873 123715 +2.6 Passenger load factor (%) UK/Europe 55.0 56.3 -1.3 pts 71.3 67.9 +3.4 pts Americas 69.6 73.8 -4.2 pts 77.6 79.4 -1.8 pts Asia Pacific 75.4 77.6 -2.2 pts 78.8 76.8 +2.0 pts Africa and Middle East 77.8 81.3 -3.5 pts 77.4 77.2 +0.2 pts Total 69.5 72.5 -3.0 pts 76.5 76.1 +0.4 pts Revenue tonne km (RTK) (m) Cargo tonne km (CTK) 338 412 -18.1 3964 4100 -3.3 Total RTK 1248 1335 -6.5 13771 13508 +1.9 Available tonne km (m) 1923 1961 -2.0 19495 19326 +0.9 Overall load factor (%) 64.9 68.1 -3.2 pts 70.6 69.9 +0.7 pts Certain information included in these statements 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 Business Plan programs, 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 itemize 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 2006. The estimated impact of the averted strike in Quarter 4 reflects the direct costs of the measures and the estimated revenue impacts, both direct and indirect. The estimate of £80 million is based on assumptions the company considers reasonable, but are judgemental. Investor Relations Waterside (HCB3) PO Box 365 Harmondsworth UB7 OGB Tel: +44 (0) 20 8738 694 This information is provided by RNS The company news service from the London Stock Exchange

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