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BRITISH AIRWAYS DIVIDEND INCREASES AS NET PROFIT SOARS TO $444 MILLION FOR 91/92 FISCAL YEAR

 BRITISH AIRWAYS DIVIDEND INCREASES AS NET PROFIT SOARS
 TO $444 MILLION FOR 91/92 FISCAL YEAR
 NEW YORK, May 19 /PRNewswire/ -- British Airways (NYSE: BAB) today announced a record net income of 255 million pounds ($444 million) for the fiscal year ended March 31, 1992, up 168 percent over the previous year.
 The results for the fourth quarter showed a profit of 21 million pounds ($37 million). Revenue in the three months rose by 29.3 percent to 1.2 billion pounds ($2 billion). Passenger numbers rose 19.8 percent, showing evidence of a return to more normal trading conditions after the unprecedented events of last year.
 Announcing the results, Lord King, the chairman, said 1991 saw the airline industry record its first ever fall in international scheduled traffic, down six percent overall, with estimated losses on international scheduled services of almost $4 billion.
 "Against this background, British Airways' performance was highly creditable," he said. "We have demonstrated our ability to manage this business effectively during the most severe downturn it has experienced.
 "No other airline has yet reported profits for 1991-92 larger than those we announce today. No other airline is anywhere near us in terms of international passengers carried," he added.
 The airline's performance reflects the company's sustained efforts to hold down costs and its success in gaining market share at London despite the substantial increase in competition.
 The board is recommending a final dividend of 7.24 pence per share (estimated at $1.53 per ADS after the UK withholding tax), making 10.18 percent per share ($2.12 per ADS) for the full year, in increase of 15 percent.
 Costs rose by 2.3 percent to 4.9 billion pounds ($8.5 billion). Employee costs rose by 3.8 percent, reflecting pay settlements in the UK of 11.2 percent from Jan. 1, 1991, and four percent for 1992, backdated to Nov. 1, 1991, offset by a 7.4 percent fall in the average number of employees.
 Actual employee numbers on April 1 this year were down, year-on- year, by 8.6 percent to 48,453. Productivity rose by 11.7 percent in terms of available ton miles per employee.
 Fuel and oil costs fell 12.9 percent, helped by a 21 percent reduction in average fuel market prices.
 Capital and reserves grew by 326 million pounds ($567 million) and net borrowings decreased by 53 million pounds ($92 million) giving a seven point improvement in the net debt to total capital ratio at 42 percent.
 Group revenues for the year rose almost six percent to 5.2 billion pounds ($9 billion) from 4.9 billion pounds.
 Lord King added: "British Airways is now firmly on its flight path to recovery after the turbulence of the past year or so.
 "The board feels confident that the measures we have taken over the past 12 months and those yet to be implemented will ensure that British Airways remains competitive and well positioned to take full advantage of the expected return in the world economy," he concluded.
 Passenger load factors for the year increased marginally to 70.2 percent. A total of 25,422,000 passengers were carried on scheduled and charter services.
 Employees will receive an increased profit share bonus of two weeks basic pay. The amount to which employees are eligible under the airline's profit share scheme is 1.4 weeks.
 The additional bonus, said Lord King, reflected a contribution by the airline's employees which could not be overstated.
 NOTE: American dollar equivalents are translated at the exchange rate at March 31, 1992, of $1.74 to 1 pound.
 The dividend payable on American Depositary Shares to shareholders of record on June 12, 1992, is an estimate translated at Monday's exchange rate of $1.84 to 1 pound and takes account of the UK government 15 percent withholding tax. The dividend payment, to be made on July 31, 1992, will be at the prevailing exchange rate at that time.
 One American Depositary Share equals 10 UK ordinary shares./
 -0- 5/19/92
 /CONTACT: Sandy Gardiner, 718-397-4725, or John Lampl, 718-397-4729, or Mark Dunkerley, investor relations, 718-397-4225, all of British Airways/
 (BAB) CO: British Airways ST: New York IN: AIR SU: DIV ERN


AH -- NY094 -- 1594 05/19/92 02:30 EDT
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Date:May 19, 1992
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