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BRITISH AIRWAYS THIRD QUARTER PROFIT JUMPS, FURTHER COST SAVINGS TO BE SOUGHT

 BRITISH AIRWAYS THIRD QUARTER PROFIT JUMPS,
 FURTHER COST SAVINGS TO BE SOUGHT
 NEW YORK, Feb. 11 /PRNewswire/ -- British Airways (NYSE: BAB) today announced a net profit of 222 million pounds Sterling ($415 million) for the third quarter ended Dec. 31, 1991, which includes an extraordinary item of 140 million pounds ($262 million) achieved through the sale of British Airways Engine Overhaul Ltd.
 The balance of 82 million pounds ($153 million) in net profit represents an increase, year-on-year, of almost six times the 1990 result, despite the continuing effects of the recession in the U.S. and the U.K.
 For the three months to Dec. 31, 1991, the airline returned a pre- tax profit of 100 million pounds ($187 million), against a 20 million pounds profit for the same period last year when results reflected the effects of the Gulf War.
 Group revenue for the quarter increased by 6.1 percent to 1.31 billion pounds ($2.45 billion) from 1.24 billion pounds, largely because of better yields and despite a 3.1 percent drop in total passengers.
 Scheduled passengers fell 3.7 percent in the quarter to a total of 5,763,000. Cargo ton miles increased 0.6 percent.
 Expenditure for the quarter fell 2.9 percent to 1.2 billion pounds ($2.2 billion). Staff numbers were 9.2 percent down on the previous year and productivity up 11.4 percent.
 Primary earnings per American Depositary Share (ADS) for the third quarter were 1.13 pounds per ADS ($2.11 per ADS) from 0.19 pounds in 1990.
 Net profit for the nine months to Dec. 31, including the extraordinary item, was 374 million pounds ($699 million), up 55 percent from 241 million pounds in 1990. Group revenue for the nine months was 3.99 billion pounds ($7.47 billion), up from 3.98 billion pounds.
 The operating surplus for the third quarter was a profit of 111 million pounds ($207 million) compared with last year's break-even. The surplus for the nine months improved 13.5 percent to 319 million pounds ($596 million) from 281 million pounds for the same period last year.
 Capital and reserves at Dec. 31, 1991, including Convertible Capital Bonds, amounted to 1.6 billion pounds ($3 billion) compared with 1.5 billion pounds in the previous year.
 Borrowings, net of cash balances, decreased by 24 million pounds ($45 million) from a year ago to 756 million pounds ($1.41 billion) at Dec. 31, 1991. The net debt:total capital ratio was 32 percent compared with 49 percent at March 31, 1991.
 Chairman Lord King said that the airline was positioning itself to take advantage of economic recovery in its major markets when it happened. "Meanwhile, in these uncertain conditions, it is essential to seek further cost savings," he said.
 NOTES: American dollar equivalent amounts are translated at the exchange rate at Dec. 31, 1991, of $1.87 to one against the pound sterling. One American Depositary Share equals 10 U.K. ordinary shares.
 -0- 2/11/92
 /CONTACT: Sandy Gardiner, 718-397-4725, or John Lampl,


718-397-4729, or investor relations, Mark Dunkerley, 202-331-9068, all of British Airways/
 (BAB) CO: British Airways ST: New York IN: AIR SU: ERN


KD -- NY087 -- 8572 02/11/92 02:30 EST
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Date:Feb 11, 1992
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