Traffic & Capacity Statistics - October 1999

British Airways PLC 3 November 1999 TRAFFIC AND CAPACITY STATISTICS - OCTOBER 1999 Introduction summary of the headline figures British Airways mainline scheduled Available Seat Kilometres (ASKs) in October grew by 0.6 per cent (although for the rest of the year capacity will reduce by around 1%). Traffic, measured in Revenue Passenger Kilometres (RPKs), fell by 0.2 per cent. Premium traffic rose 8.2 per cent, with Club World again the strongest driver. This is set against a 2.4% decline in premium traffic in October 1998. A second BA Popular Person offer has recently been launched to continue to drive premium traffic growth. Non-premium traffic was 1.7 per cent lower. Passenger load factor was 0.6 points lower at 72.0 per cent. Market conditions Although trading conditions remain highly competitive, these are encouraging figures. Yields continue to be under pressure, and there must be some caution around travel patterns for the Millennium period, when demand will be difficult to forecast. Strategic developments British Airways announced that it has placed an order for 12 new 100 seat Airbus 318s, with options to purchase 12 more aircraft. The move to the new, smaller A318 is a further step in the airline's forward looking fleet strategy which will modernise the carrier's fleet, increase average yields and reduce capacity. The purchase of CityFlyer Express was completed after British Airways received approval from the Secretary of State for Trade and Industry, subject to undertakings which were offered by British Airways during the Competition Commission's investigation of the transaction. There is no requirement for British Airways to divest slots. British Airways, its subsidiaries and franchisees now operate around 47% of the slots at London Gatwick. British Airways and LanChile announced an agreement to co-operate further on air travel between the UK and Chile. Frequent flyer miles will be redeemable on each other's services, with further exploration into codeshare opportunities. The new benefits will begin in June, shortly after which LanChile will join the oneworld alliance. British Airways announced that it is to operate an additional three services between Heathrow and Lagos, Nigeria, in conjunction with Nigeria Airways. The airline currently operates a daily 747 400 from Gatwick to Lagos, and will now operate six services a week from Heathrow to Lagos in co-operation with Nigeria Airways. Costs Fuel prices were relatively steady through October, with jet kerosene currently trading at around $210 a tonne, compared to approximately $165 per tonne at the end of our first quarter. The level of fuel hedging for the balance of the financial year is approximately 85%. The yen continued to strengthen against sterling. At the end of October, the value of the yen stood at Yen 173 to the pound, compared to Yen 175.70 at the end of September 1999. Other highlights In the United States, a US District Court Judge unconditionally dismissed all outstanding claims brought by Virgin Atlantic Airways against British Airways in the United States. The British Airways Online Press Office has now gone live. All press releases for the year, including the traffic statistics commentary, are now available at www.britishairways.com/press. BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS Month of October Financial year to date April through October BRITISH AIRWAYS Change Change MAINLINE SCHEDULED SERVICES 1999 1998 (%) 1999 1998 (%) Passengers carried (000) UK/Europe 2094 2138 -2.0 14721 15043 -2.1 Intercontinental 1173 1195 -1.8 8276 8254 +0.3 Total 3267 3332 -2.0 22997 23297 -1.3 Revenue passenger km (m) UK/Europe 1892 1914 -1.2 13420 13606 -1.4 Intercontinental 8607 8608 -0.0 59904 59662 +0.4 Total 10498 10522 -0.2 73323 73268 +0.1 Available seat km (m) UK/Europe 2860 2821 +1.4 19760 19220 +2.8 Intercontinental 11720 11668 +0.4 80757 80291 +0.6 Total 14580 14489 +0.6 100517 99511 +1.0 Passenger load factor (%) UK/Europe 66.1 67.9 -1.8 pts 67.9 70.8 -2.9 pts Intercontinental 73.4 73.8 -0.4 pts 74.2 74.3 -0.1 pts Total 72.0 72.6 -0.6 pts 72.9 73.6 -0.7 pts Revenue tonne km (RTK) (m) Cargo tonne km (CTK) 427 382 +11.8 2579 2523 +2.2 Total RTK 1468 1429 +2.7 9879 9826 +0.5 Available tonne 2127 2072 +2.6 14541 14213 +2.3 km (m) Overall load 69.0 69.0 +0.0 pts 67.9 69.1 -1.2 pts factor (%) TOTAL GROUP SCHEDULED SERVICES (including Deutsche BA, Air Liberte) Passengers 3867 3900 -0.9 27069 27216 -0.5 carried (000) Revenue passenger 10998 10976 +0.2 76978 76699 +0.4 km (m) Available seat km 15341 15216 +0.8 105958 104780 +1.1 (m) Total RTK (m) 1517 1476 +2.8 10248 10179 +0.7 Available tonne 2200 2143 +2.7 15063 14725 +2.3 km (m) Shareholder Value Waterside (HEA3) PO Box 365, Harmondsworth West Drayton, Middlesex UB7 OGB Tel: +44 (0) 181 738 6947 Fax: +44 (0) 181 738 9602

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