Brtish Airways results and passenger figures for March 2009

Comparisons between March 2008 and March 2009 are complicated by the timing of
Easter, which fell in March in 2008 and will be in April this year.    The effect
in March 2009 is to increase premium and reduce non-premium volumes.

Cargo, measured in Cargo Tonne Kilometres, fell by 10.0%.      

Market conditions

Market conditions remain challenging, with both volume and yield under pressure
in all markets.

At Investor Day we indicated that the full year result would be impacted by one-off
items: the significant snowfall in early February, which severely restricted operations
for several days, and any additional severance costs through to the end of March
as we continue to restructure the business.    These are expected to be some £20
million and £35 million respectively.    

The revenue outlook for the full year will be impacted by some £20- £25 million
due to the weakness in volume and yield, particularly in US traffic.

Including the impact of weaker revenue for the year we anticipate that we will
report a full year operating loss of some £150 million before total severance
costs of £75 million.

Strategic Developments



The airline won five top accolades from the Chartered Institute of Marketing
Travel Marketing Awards for its ‘Terminal 5 is working’ campaign.

British Airways has invested £5 million to become the first commercial airline
to introduce onboard Microwave Landing System technology. The system increases
the safe landing rate during low visibility at Heathrow by more than 20 per cent,
reducing delays and disruption caused by fog.

Flights to Atlanta and Toulouse moved from Gatwick to Heathrow at the start of the summer season on March 29,
2009. Services from Heathrow to Dhaka and Kolkata and from Gatwick to Dublin, Geneva (summer only) and Zurich were suspended.    At Heathrow, Nice flights moved from Terminal 3 to Terminal
5 and flights to Malaga and Vienna moved from Terminal 5 to Terminal 3.