2. 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, 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 publicity update or revised 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 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 2004.

3. BRITISH AIRWAYS 2nd Quarter & Interim Results 2004/05 BRITISH AIRWAYS 2nd Quarter & Interim Results 2004/05 8 th November 2004

4. Martin Broughton Chairman Martin Broughton Chairman

6. John Rishton Chief Financial Officer John Rishton Chief Financial Officer

7. Headline numbers Turnover 2,0262.2%3,9513.6% Operating profit 24023.1%39066.0% Operating margin 11.82.0pts9.93.7pts EBITDAR 50615.8%87824.5% Pre-tax profit 220nm335nm Turnover 2,0262.2%3,9513.6% Operating profit 24023.1%39066.0% Operating margin 11.82.0pts9.93.7pts EBITDAR 50615.8%87824.5% Pre-tax profit 220nm335nm Period ended September 30, 2004 3 MONTHS £m VLY VLY VLY VLY 6 MONTHS £m 6 MONTHS £m

8. Cost performance offset fuel increase £m Operating profit increase 45 Revenue (30) Cost performanc e Cost performanc e 32 43 Fuel spend

9. Revenue up …. slightly % 2002/03 2003/04 2004/05

10. Passenger yield p/RPK remains weak % % Yield per RPK vly 2003/04 2004/052002/03

11. Yield analysis Price(1.8) Mix 0.1 Exchange(3.4) (5.1) % VLY

12. More seats filled Passenger seat factor vly % age points 2002/03 2003/04 2004/05

13. Quarter 2 costs Capacity up 3.1% Net costs down 3.2% Unit costs reduced by 6.1% Capacity up 3.1% Net costs down 3.2% Unit costs reduced by 6.1%

14. Employee costs 561 7.7% up Handling, catering etc 2384.8% down Selling costs 12617.6% down Engineering 1186.3% down Fuel & oil 27112.4% up Other 26922.0% down NET OPERATING COST 1,5833.2% down Employee costs 561 7.7% up Handling, catering etc 2384.8% down Selling costs 12617.6% down Engineering 1186.3% down Fuel & oil 27112.4% up Other 26922.0% down NET OPERATING COST 1,5833.2% down Net costs down 3.2% £m vly

15. Cost performance Cost reduction vly % Net costs Unit costs 2003/04 2002/03 2004/05

16. Fuel prices continue to rise

17. Strong fuel hedging position this year Nov – Mar ’0575%$32 Hedging coverAverage cap (Brent equivalent)

18. Strong fuel hedging position next year Hedging coverAverage cap (Brent equivalent) Apr – Jun 0550%$34 Jul – Sept 0545%$35 Oct – Dec 0545%$35

19. Fuel surcharges - £160m this year Effective 13/5/04£2.50 flat charge per LH and SH sector Effective 11/8/04LH sector charge increased to £6 Effective 14/10/04LH sector charge increased to £10 SH sector charge increased to £4 Plus Cargo fuel surcharges £50m £20m £70m

20. Cashflow before financing Half year ended 30 September £m 214 348 495 54 738 367 868

21. Liquidity remains strong Cash1.9 Facilities 0.4 Total liquidity 2.3 Sept 2004 £bn

22. Net debt £3.3bn lower Dec 01 Mar 02 Jun 02 Sep 02 Dec 02 Mar 03 £m £3.3bn Jun 03 Sep 03 Dec 03 Mar 04 Sep 01 Jun 04 Sep 04

23. Early debt repayment Scheduled138247 Early225366 Total363613 Q2Half year

24. Debt repayments fall Current repayment profile Year ended March 31 £m equivalent December 2001 repayment profile

25. % Gearing down from March 2003/04 2004/05

26. In summary Steady progress

28. Rod Eddington Chief Executive Officer Rod Eddington Chief Executive Officer

29. What we have said Fix the business Fix the balance sheet Fix the business Fix the balance sheet

30. Steady progress Procurement £300 million ceBA and other£150 million Employee costs£300 million Balance sheetReduce debt Procurement £300 million ceBA and other£150 million Employee costs£300 million Balance sheetReduce debt

31. Procurement delivering £300m Price Demand control Specification.... a step change in company behaviour Price Demand control Specification.... a step change in company behaviour

32. ceBA delivering £100 million ba.com –on line booking –manage my booking –up selling –boarding passes –Executive Club e-ticket Self service check-in ba.com –on line booking –manage my booking –up selling –boarding passes –Executive Club e-ticket Self service check-in

33. Achievements: ba.com bookings up Weekly online bookings (in '000s) 0 10 20 30 40 50 60 70 80 O-02 N-02D-02 J-03 F-03 M-03 A-03 M-03 J-03 A-03 S-03 O-03 N-03D-03 J-04 F-04 M-04 A-04 M-04 J-04 A-04 S-04 monthly average online bookings are up 26% against last year

34. Shorthaul leisure distribution Trade 54% ba.com 20% contactBA 17% Other direct 9% April 2002 Trade 38% ba.com 53% contactBA 3% Other direct 6% September 2004

35. It’s clear what you have bought. Buying upgrades is easy

36. Do it online - save time at the airport Book seat Book meal FFP number Check-in Itinerary Book hotel API ALL ON LINE

37. I can travel with my home printed boarding pass from London City - the first airport in England Print your own boarding pass for over 31 european airports

38. Executive Club Executive Club Self Service usage 30% 40% 50% 60% 70% 80% Jun 03 Jul 03 Aug 03 Sep 03 Oct 03 Nov 03 Dec 03 Jan 04 Feb 04 Mar 04 Apr 04 May 04 Jun 04 Jul 04 Aug 04 Sep 04 Oct 04 Nov 04 Dec 04 Jan 05 Feb 05 Mar 05 actual target forecast 70%

39. ba.com bookings + servicing Jun 01 Aug 01 Oct 01 Jan 02 Mar 02 May 02 Aug 02 Oct 02 Dec 02 Mar 03 May 03 Jul 03 Sep 03 Dec 03 Feb 04 Apr 04 Jul 04 Sep 04 0% 5% 10% 15% 20% 25% 30% Pax Using ba.com Pre-Departure Bookings APIS Manage My Booking

40. e-ticket take up %

41. Self service check-in 14.5% 4.4% 18.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% Mar 03 Apr 03 May 03 Jun 03 Jul 03 Aug 03 Sep 03 Oct 03 Nov 03 Dec 03 Jan 04 Feb 04 Mar 04 Apr 04 May 04 Jun 04 Jul 04 Aug 04 Sep 04 % of total check-in transactions SSK Check-ins OL Check-ins Total Self Service actual

42. Transformational targets 100% e-ticket usage 50% Self-service check-in (on and off airport) 80% core Exec Club interactions self-service 35% visit ba.com before they fly 45% email address capture 60% pre airport APIS data collection 100% e-ticket usage 50% Self-service check-in (on and off airport) 80% core Exec Club interactions self-service 35% visit ba.com before they fly 45% email address capture 60% pre airport APIS data collection

43. Employee costs delivering £300 million Some progress Delayed by pay deal 2 years clear air Changes to working practices Some progress Delayed by pay deal 2 years clear air Changes to working practices

44. Balance sheet Operating business Capital expenditure Disposals Operating business Capital expenditure Disposals

45. Balance sheet Net debt down by£3.3 billion Early debt repayment£710 million Cash flow up£2.3 billion Capital expenditureReduced Disposals£1.4 billion Unencumbered aircraftfrom 13 to 59 Net debt down by£3.3 billion Early debt repayment£710 million Cash flow up£2.3 billion Capital expenditureReduced Disposals£1.4 billion Unencumbered aircraftfrom 13 to 59 In 3 years

46. Steady progress No quick fixes Steady progress No quick fixes

47. 2004/5 revenue outlook unchanged Capacityup 2-3% Seat factor up Yielddown Revenue up 2-3% Capacityup 2-3% Seat factor up Yielddown Revenue up 2-3%

48. Cost headwinds remain Cost headwinds –Pensions –Pay –Fuel –Volume related costs –Landing charges Cost initiatives –Procurement –ceBA –Employee costs Cost headwinds –Pensions –Pay –Fuel –Volume related costs –Landing charges Cost initiatives –Procurement –ceBA –Employee costs

49. October traffic statistics ASKs+0.1% RPKs +1.8% Seat factor+1.2% Premium +0.8% ASKs+0.1% RPKs +1.8% Seat factor+1.2% Premium +0.8%

50. Summary Steady progress Business initiatives continue Outlook challenging 10% remains our goal Steady progress Business initiatives continue Outlook challenging 10% remains our goal

52. Questions