Summary of Headline Figures

In April 2007, passenger capacity, measured in Available Seat Kilometres, was 0.5 per cent above April 2006. Traffic, measured in Revenue Passenger Kilometres, was lower by 2.2 per cent. This resulted in a passenger load factor down 2.1 points versus last year, to 76.9 per cent. The decrease in traffic comprised a 1 per cent increase in premium traffic and a 2.8 per cent decrease in non-premium traffic. The decline in non-premium to some degree reflects year on year Easter effect that saw a 10.9% increase last year. Cargo, measured in Cargo Tonne Kilometres, fell by 7.7 per cent. Overall load factor fell by 0.7 points to 70.9 per cent.

Market Conditions

Underlying market conditions are broadly unchanged. Premium continues positive, while weak non-premium, especially on the Atlantic is still a feature.

Strategic Developments

The airline won Airline of the Year 2007 at the OAG awards.

British Airways launched a 5 million pounds advertising campaign to promote the airline's new Club World business class service. The next-generation Club World is now on 96 services a week between London Heathrow and New York JFK, as its installation continues across the airline's long-haul fleet.

The airline launched a summer season sale with prices from as low as 239 pounds return. Sale prices include Los Angeles and Miami for 399 pounds and New York, Baltimore, and Washington available from just 349 pounds.

British Airways increased its longhaul fuel surcharge, effective from May 2, on flights of less than nine hours from 30 pounds per sector (60 pounds return) to 33 pounds per sector (66 pounds return) and from 35 pounds per sector (70 pounds return) to 38 pounds (76 pounds return) on flights longer than nine hours.

A number of private equity companies have been approached by British Airways about making a consortium offer for Iberia. Any consortium bid would not involve further capital investment by British Airways and the company continues to examine numerous options including full disposal. However, it did rule out an independent bid for the airline.

The board of directors approved the delisting of British Airways Plc from the New York Stock Exchange and the deregistration of the company and termination of its reporting obligations under the Securities Exchange Act of 1934 (the "Exchange Act"). The company has provided written notice to the NYSE of its intent to delist.

British Airways has chosen Rolls-Royce Trent engines to power its four new Boeing 777-200ER aircraft that will be delivered in 2009 and agreed a long-term maintenance contract with Rolls Royce for the engines.

Tickets for the first flights from London Heathrow's Terminal 5 went on sale this month.

British Airways announced the appointment of Julia Simpson as head of corporate communications with effect from August 2007.