Traffic & Capacity Stats-May

British Airways PLC 5 June 2000 TRAFFIC AND CAPACITY STATISTICS - MAY 2000 Summary of the headline figures Traffic, measured in Revenue Passenger Kilometres, rose by 4.2 per cent in May. Premium traffic grew by 10 per cent and non- premium traffic grew by 3.2 per cent. Capacity, measured in Available Seat Kilometres, grew by 1.4 per cent, with the majority of the growth occurring in Americas and Africa and Middle East. With traffic up 4.2 per cent, passenger load factor rose 1.8 points. Non-mainline statistics reflect the sale of Air Liberte, with traffic and capacity excluded with effect from April 1, 2000. Market conditions As stated in the preliminary results announcement, expected market conditions for the key summer season give cause for cautious optimism. Costs Work continues on the nine strategic initiatives to reduce costs. Expenditure on new products for World Traveller, Club World and Club Europe in the fourth quarter will continue to be a feature of selling and marketing costs in the course of the current financial year. Strategic developments British Airways completed the sale of its 86 per cent shareholding in the parent company of Air Liberte to Taitbout Antibes BV. British Airways' net cash proceeds from the sale are FFr457 million (£40 million). Accounting rules require purchased goodwill previously written off to be reinstated, which has led to a loss on disposal of approximately £56 million in the first quarter. The net effect of the disposal has been to increase reserves by £117 million, and improve the net debt to total equity ratio by 1.2 points and eliminate the continuing trading losses of Air Liberte. In conjunction with ten other major airlines, British Airways announced the creation of the first European, multi-airline, on- line travel agency. The new site will offer the public access to the most up-to-date fare information, including the airlines' lowest branded fares. Passengers will also be able to book hotels, car hire, insurance and other travel services through the site. British Airways launched a new range of business fares on domestic routes between the UK regions and London, and on twelve longhaul routes for Club World and First. These fares will offer businesses a wider range of fares, to take account of differing needs for flexibility and time of travel. British Airways has agreed to sell its 14.1 per cent stake in Hogg Robinson to the management buy-out consortium. Should the sale be successfully completed, British Airways will recognise a £4.9 million profit on disposal. Three new Board Directors have been appointed to the British Airways Board. Rod Eddington has joined the Board as Chief Executive. Martin Broughton, Chairman of British American Tobacco p.l.c. and Dr Martin Read, Managing Director and Chief Executive of Logica plc, have been appointed Non-Executive Directors. Sir Michael Angus, currently Non-Executive Deputy Chairman, will step down from the Board at the Annual General Meeting on July 11, 2000. June 5, 2000 BRITISH AIRWAYS MONTHLY TRAFFIC AND CAPACITY STATISTICS Month of May Financial year to date April through May BRITISH AIRWAYS MAINLINE Change Change SCHEDULED SERVICES 2000 1999 (%) 2000 1999 (%) Passengers carried (000) UK/Europe 2035 1975 +3.1 3972 3896 +2.0 Americas 729 711 +2.5 1453 1400 +3.8 Far East & Australasia 177 170 +4.1 370 349 +6.0 Africa and Middle East 216 201 +7.4 462 427 +8.1 Total 3157 3057 +3.3 6257 6072 +3.1 Revenue passenger km (m) UK/Europe 1829 1785 +2.5 3587 3492 +2.7 Americas 4986 4831 +3.2 9907 9510 +4.2 Far East & Australasia 1731 1642 +5.4 3601 3361 +7.1 Africa and Middle East 1406 1289 +9.1 3013 2741 +9.9 Total 9952 9548 +4.2 20109 19105 +5.3 Available seat km (m) UK/Europe 2789 2797 -0.3 5431 5480 -0.9 Americas 6801 6718 +1.2 13269 13233 +0.3 Far East % Australasia 2498 2466 +1.3 4960 4849 +2.3 Africa and Middle East 2453 2363 +3.8 4855 4657 +4.2 Total 14541 14346 +1.4 28515 28219 +1.0 Passenger load factor (%) UK/Europe 65.6 63.8 +1.8pts 66.1 63.7 +2.4pts Americas 73.3 71.9 +1.4pts 74.7 71.9 +2.8pts Far East & Australasia 69.3 66.6 +2.7pts 72.6 69.3 +3.3pts Africa and Middle East 57.3 54.6 +2.7pts 62.1 58.9 +3.2pts Total 68.4 66.6 +1.8pts 70.5 67.7 +2.8pts Cargo tonne km (CTK) 408 355 +14.7 785 674 +16.6 Total RTK (m) 1401 1306 +7.3 2790 2575 +8.4 Available tonne km (m) 2126 2059 +3.3 4157 4059 +2.4 Overall load factor (%)65.9 63.5 +2.4pts 67.1 63.4 +3.7pts NON MAINLINE SCHEDULED SERVICES* Passengers carried (000)658 675 -2.6 1,280 1,316 -2.8 Revenue passenger km (m)474 624 -24.0 946 1,243 -23.9 Available seat km (m) 742 1,005 -26.2 1,422 1,970 -27.8 Total RTK (m) 46 62 -25.8 88 123 -28.4 Available tonne km (m) 74 97 -23.9 143 191 -24.9 TOTAL GROUP SCHEDULED SERVICES Passengers carried(000)3,815 3,732 +2.2 7,537 7,388 +2.0 Revenue passenger km(m)10,427 10,172 +2.5 21,055 20,348 +3.5 Available seat km (m) 15,283 15,351 -0.4 29,937 30,189 -0.8 Total RTK (m) 1,447 1,368 +5.8 2,879 2,698 +6.7 Available tonne km (m) 2,200 2,156 +2.0 4,300 4,250 +1.2 *including DBA, Go & Shareholder Value Cityflyer Express w.e.f. 5.11.1999, and Waterside (HEA3) excluding Air Liberte w.e.f. 1.4.2000. PO Box 365, Harmondsworth For Air Liberte, for the 2 months ended May 1999 West Drayton, Middlesex UB7 OGB and 12 months ended March 2000, ASKs were Tel: +44 (0) 20 8738 6947 1,111m and 6,798m respectively. For the same periods,Fax: +44 (0) 20 8738 9602 RPKs were 783m and 4,839m.

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