Anyone know why BAY is rising so strongly in spite of all the bad news regarding delayed flights, etc.?
All comments appreciated

janetbennison,go to reuters,statment from mr walsh in Milan recently.HOLD

capetown the write up at reuters sounds very good, and hopefully the share price drop has now been well overdone. thankyou for pointing this statement out to me. Good luck from janet.

From The Sunday TimesMay 27, 2007

BA chiefs face extradition over price fixingDavid Leppard
AMERICAN government prosecutors are preparing for the extradition of four current or former British Airways executives accused of involvement in a price-fixing scandal.

Lawyers from the US Department of Justice have notified the mens lawyers that they will want to talk to them. The BA Four could face more than 20 years in jail if they are extradited and convicted in a US court.

A team from the department has visited Britain and other European countries to gather evidence for a possible prosecution. It has established a federal grand jury to consider whether charges should be brought.

The case is also being investigated by the Office of Fair Trading (OFT) in Britain.

In 2004 and 2005, both BA and Virgin imposed a series of almost identical fuel surcharges on London-New York flights. The price rises, which cumulatively added 70 to the price of a ticket, were in some cases announced by both airlines within days of each other.

At the time, BA said it was simply reacting to rises in the price of aircraft fuel. However, American investigators have obtained telephone records that allegedly show two BA executives talking to two Virgin executives at key moments in the run-up to the price rises.

This month BA admitted that it had breached competition laws. Willie Walsh, its chief executive, said nine days ago that the airline had set aside 350m to cover any legal case.

It had previously been thought that only two BA executives were involved in the inquiry. Martin George, BAs commercial director, and Iain Burns, its head of communications, were both given leave of absence when BA revealed the existence of the inquiry last June. They resigned last autumn.

It has now emerged that two other BA executives, who still work at the airline, are being investigated. American legal sources said one was a senior executive in the marketing department, the other a rising star on the commercial side.

The case of the BA Four is threatening to revive concerns about an extradition treaty that ministers signed with America in 2003. It has been criticised as one-sided because it allows America to obtain the extradition of British citizens without prima facie evidence. Far tougher rules apply if Britain seeks to extradite American citizens.

The alleged price-rigging emerged when Virgin decided to notify the OFT early last year. Under the 2002 Enterprise Act, a company that tips off the authorities about an alleged offence and provides evidence to support a prosecution can be granted immunity from prosecution.

The act allows for fines of up to 10% of a companys turnover. Individuals found guilty of price-fixing face up to five years in jail. The maximum sentence for price-rigging in America is life imprisonment.

JANET,HOPE U HELD ONTO YOUR SHARES,SEE THAT THEY HAVE BEEN UPGRADED TO INVESTMENT STATUS AFTER FOUR YEARS OF WAITING,DIVIDENDS COMING SOON I THINK.

I have still got my british airways shares, I am still sitting on a massive loss with them. Lets hope that now they have been upgraded that they will shoot back up to five pounds a share again. What do you think the chances of that happening are? and the very best of luck to all holding. take care all from janet.

Janet you are looking at 600p,in 9/12months.

lets hope so

i actually worked for BA for 18 years and left just over two years ago. I am positive BA are about to anounce a huge rise in its profits, it has virtualy cleared the debt of 5.5 billion to 900 million. The company has shed many of its liabilities including leased areas of land at heathrow and old hangars. The move to t5 will certainly make the airline more efficient in terms of on time departures and will make airine connections easier between long and shorthaul operations.The pension fund issues have been sorted. Many peole will not be awre of other issue that really affected BA's operation such as the introduction of a new engineering software programme EWS from SAP. The introduction of this programme caused massive disruption to the airline two years ago, but was however well covered up by the airline. The new EWS programme will also (now its bedded in) improve aircraft maintenance due to improved spares ordering.

janet,realx,YOU WILL SEE 600P

I am not so sure with the fuel price rising, I think BA will drop further and its ticket price are not competitive enough.

Janet,hope you feeling a little more confident with these.

These crooks should be put in jail for price fixing...always knew BA is not an honest airline.


From The Times - August 25, 2007

US refuses to protect BA executives over fixing of ticket prices - David Robertson

Four British Airways executives have been refused immunity under a plea agreement between the airline and the United States Department of Justice (DoJ) over fixing the price of tickets with rivals.

A further six former BA executives are also named in the agreement, which was released by the US District Court in Washington yesterday. On Thursday BA pleaded guilty to price-fixing charges and will pay a $300 million (149 million) penalty.

The individuals named in the plea are not protected by the agreement and the DoJ may begin an investigation into their roles in the conspiracy. This could lead to the department bringing separate criminal charges against them.

This week some of the executives sought an injunction to keep their names from appearing in the plea, arguing that it would imply that they were under investigation at present.

The most senior of the present BA management to appear in the plea agreement is Gareth Kirkwood, the director of operations, who was managing director of British Airways World Cargo. Mr Kirkwood is also a member of the airlines top executive management team.

The other incumbent executives named in the plea agreement are Ian Barrigan, the business development manager, Andrew Crawley, the head of UK and Ireland sales, and Anthony Nothman, the manager of international customer services.

BA admitted in court on Thursday that it had fixed the price of fuel surcharges with competitors. Between 2004 and February 2006 the airline discussed the level and timing of fuel surcharge increases with Virgin Atlantic, a rival. Fuel surcharges are supplements to the standard ticket price and were introduced to cover rising fuel costs.

British Airways SP 436p
Write up in last weeks shares magazine suggesting the company is UNDERVALUED at current prices,PE of 7.

B A copes will its turbulence,and suggests its a BUY.

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British Airways PLC
02 November 2007



INTERIM MANAGEMENT REPORT

Period April 1, 2007 - September 30, 2007 (Unaudited)

PROFITS UP ON GOOD RESULTS

British Airways today (November 2) presented its interim management report for
the six months ended September 30, 2007.

Period highlights:

Operating profit of 556 million (2006: 442 million)
Operating margin 12.5 per cent (2006: 9.8 per cent)
Profit before tax of 593 million (2006: 471 million)
Longhaul fleet order announced
T5 customer trials started September 17, 2007
Full year fuel costs expected to top 2 billion
10 per cent operating margin on track


British Airways' chief executive Willie Walsh, said:

'These are record results which are driven by all the hard work our people put
in last year to tackle the cost base of our business. Profits are up some 26
per cent and costs are down nearly 4 per cent. Fuel costs remain a major
challenge and our fuel bill for the year is expected to top 2 billion for the
first time. We see every possibility of achieving our 10 per cent operating
margin by March 2008.

'Our business plans for the future are gaining real momentum. We announced an
order for 36 new longhaul aircraft that are greener, quieter and technically
more advanced. Both the Airbus A380 and the Boeing 787 are truly 21st century
aircraft with huge potential. The Airbus A380 will work well on high density
routes and the Boeing 787 gives us the flexibility to open new routes and grow
existing ones. These aircraft set the gold standard when it comes to
environmental performance in CO2 emission, local air quality and noise. They
will contribute significantly to our target of improving fuel efficiency by 25
per cent between 2005 and 2025.

'Further good news was our welcome return to investment grade which helped us
negotiate the finance for aircraft deliveries until 2011, despite the current
difficulties in the markets.

'Terminal 5 is now only 145 days away. Before its opening on March 27, 2008 our
new home will have undergone trials involving thousands of volunteers. The
first major public trials begin this weekend to ensure customers can speed
through check-in and chill out for the ultimate experience. Our people are
determined to ensure it will be a national success story Britain can be proud
of.

'More good news for our customers will be the removal of restrictions on
hand-baggage which we expect soon. This will go a long way to relieving the
hassle factor of the one bag limit. At the same time we continue to staff up to
record levels in the terminals and have improved our direct baggage performance
in recent weeks. This is despite the 15 per cent increase in hold baggage.'

Financial review

Revenue was marginally down by 0.8 per cent. Excluding exchange, revenue was up
2 per cent.

Passenger revenue fell slightly to some 3.9 billion on capacity up half a per
cent. Seat factor was down almost 1 point to 78.4 per cent. Yields rose half a
per cent due to more premium passengers travelling, although our gains were
largely neutralised by exchange rates, particularly the US dollar.

Club World performed strongly, contributing to our overall 2.5 per cent increase
in premium traffic. Non-premium traffic has been soft on the North Atlantic and
Europe.

Lower cargo volumes driven by tougher competition, and lower yields in Asia
Pacific, Europe and the UK - plus exchange effects - have led to a disappointing
result in our cargo business. Revenue fell to 290 million.

Our cost performance was excellent, helped by the weak US dollar. Total costs
were down 150 million with unit costs down 2.6 per cent. Employee costs fell by
7.1 per cent to almost 1.1 billion because of reduced pensions costs and lower
severance costs. Fuel was down 3.5 per cent in the half year helped by the weak
US dollar. We have fewer aircraft on operating leases and have renegotiated
some existing leases, so costs were down 21.4 per cent. Engineering costs were
up 6.7 per cent because of price rises in maintenance and higher volumes.
Handling charges, and other operating costs have risen by 3.4 per cent because
of the cost of dealing with baggage issues.

The financial position of the company remains strong and this has given us the
confidence to order 12 Airbus A380 aircraft, with options for a further 7
aircraft, and 24 Boeing 787s with options for a further 18 aircraft.

Our cash and net debt were affected by payments into the New Airways Pension
Scheme (NAPS) and to the US Department of Justice for anti competitive activity.
Cash at the end of September was 1.8 billion, 599 million lower than at March
2007. Our net debt was 1.4 billion, up 422 million since the year end.

Capital expenditure at 297 million was higher than last year because we took
delivery of three new Airbus A321 aircraft and continue to invest in the new
Club World cabin and Terminal 5.

The tax rate was 18 per cent and benefited from a one-off credit because of the
reduction in the UK corporation tax from 30 per cent to 28 per cent, effective
from April 1, 2008. Excluding the one-off credit, the tax rate for the period
would have been 30 per cent.

Business review

Our key business objectives focus on four themes, the first of which is Bringing
Terminal 5 Alive. T5 will open on March 27, on time and on budget. An
exhaustive six month trial of all the new processes and equipment is underway to
ensure T5 will be a flagship for the UK and a showcase to welcome the 2012
Olympics.

Our second theme redefines our customer promise under the banner of BA Basics
and Brilliance - ensuring consistent high quality service 24 /7 and brilliance
where it counts. Punctuality and baggage performance remain a challenge at
Heathrow where facilities are old and overstretched. Heathrow was designed to
handle 45 million passengers but today looks after 67 million passengers per
year. Both these key areas will be improved significantly when we move to our
new home in T5 but, in the meantime, we remain focused on improving our current
performance.

Our recent longhaul fleet order is fundamental to our third theme of Investing
in Growth. The order for 12 Airbus A380 aircraft and 24 Boeing 787 aircraft and
options for a further seven A380s and 18 B787s, allows for replacement of older
aircraft and sustainable, profitable growth. A key factor in our choice of these
aircraft was their environmental performance and they score highly on every
measure. They are cleaner, quieter and more fuel efficient.

We have announced we are ending our franchise agreements in the UK with GB
Airways and Loganair. The franchise model has outlived its purpose in the UK,
although this decision does not affect our overseas franchisees which continue
to provide valuable feed traffic and brand exposure in areas we cannot serve.

Our environmental credentials are being scrutinised as never before. We have
taken climate change very seriously for a long time. More than a decade ago we
were the first airline to set a target for improving fuel efficiency and we led
the way in advocating carbon trading.

We have set a new target to improve our aircraft fuel efficiency by 25 per cent
by 2025. We have also made improvements to the accessibility of our online
passenger carbon offset scheme on ba.com and will announce further improvements
in the coming weeks. On waste minimisation we aim to recycle half of our waste
and phase out use of landfill by 2010.

To cut emissions and save fuel, nearly half our aircraft now taxi to the
terminal with one engine shut down. In readiness for the move to Terminal 5, we
have taken delivery of 38 new airport buses, which comply with the latest Euro 5
exhaust emission standards.

We are committed to ensuring our people and our processes reflect our
responsibility to the environment. To support our commitment we have appointed
Silla Maizey, former Head of Procurement, as our new Head of Corporate Social
Responsibility.

Our final and most enduring theme in recent years has been achieving a
competitive cost base. Improving cost efficiency and eliminating waste in our
business is key to delivering our target of a 10 per cent operating margin,
which we are on track to achieve by March 2008.

Principal risks and uncertainties

The principal risks and uncertainties affecting the Group remain those detailed
on page 27 of the March 31, 2007 Annual Report & Accounts, with the exception of
the following additional item:

Heathrow Operational Constraints

Heathrow has no spare runway capacity and operates on the same two runways it
had when it opened 60 years ago. As a result the company is vulnerable to
short-term operational disruption and there is little it can do to mitigate
against this. The UK government is expected to announce shortly a public
consultation on full utilisation of the two runways and on the construction of a
short third runway.

This would create extra capacity and reduce delays. Ending stacking before
landing and queuing on taxiways would cut Heathrow's CO2 emissions by 500,000
tonnes a year. An increase in runway capacity would create more take-off and
landing slots and enable Heathrow to rival European hubs like Paris, Amsterdam
and Frankfurt.

Related parties

Related party disclosures are given in Note 18 to the condensed consolidated
financial information.

Trading Outlook

We have revised our revenue guidance to around 3 to 3.5 per cent because of the
continued weakness of the US dollar.

Premium traffic continues to be strong, supporting our earlier decision to make
more premium capacity available. The North Atlantic non-premium market is still
soft but other non-premium markets are more encouraging.

We have also revised our guidance for costs, excluding fuel, which previously
was flat. We now expect costs to be down by 100 million because of the weak
dollar.

Our fuel costs are expected to be up by 100 million on last year, 20 million
lower than our previous guidance.

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, discussions of
the Company's Business Plan programs, 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 publicly update or revise 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 a material adverse effect on the future operations
or results of an airline operating in the global economy.

ends

Note to Editors:

This is the first Interim Management Report that British Airways has released
under the European Union Transparency Directive. The new rules apply for all
accounting periods beginning on or after January 20, 2007.

In addition there will be a webcast of an analyst conference call and slide
presentation at 2pm (GMT) available through our website
www.bashares.com
.


INTERIM RESULTS 2007-2008 (unaudited)
OPERATING AND FINANCIAL STATISTICS (Note 1)
Six months ended
September 30 Better/
2007 2006 (Worse)
Restated
(Note 1)

Revenue m 4,456 4,492 (0.8)%

Operating profit m 556 442 25.8%

Profit before tax m 593 471 25.9%

Profit after tax m 487 402 21.1%

Loss from discontinued operations m (2) (80) 97.5%

Basic earnings per share p 41.7 34.8 19.8%


Six months ended
September 30 Better/
2007 2006 (Worse)
TOTAL GROUP OPERATIONS Restated


TRAFFIC AND CAPACITY

RPK (m) 59,336 59,775 (0.7)%
ASK (m) 75,705 75,353 0.5%
Passenger load factor (%) 78.4 79.3 (0.9)pts
CTK (m) 2,366 2,403 (1.5)%
RTK (m) 8,340 8,427 (1.0)%
ATK (m) 11,573 11,703 (1.1)%
Overall load factor (%) 72.1 72.0 0.1pts
Passengers carried (000) 17,854 17,921 (0.4)%
Tonnes of cargo carried (000) 380 387 (1.8)%

FINANCIAL

Operating margin (%) 12.5 9.8 2.7pts
Passenger revenue per RPK (p) 6.52 6.49 0.5%
Passenger revenue per ASK (p) 5.11 5.15 (0.8)%
Cargo revenue per CTK (p) 12.26 13.23 (7.3)%
Total traffic revenue per RTK (p) 49.89 49.78 0.2%
Total traffic revenue per ATK (p) 35.95 35.85 0.3%
Total expenditure on operations per RTK (p) 46.76 48.06 2.7%
Total expenditure on operations per ATK (p) 33.70 34.61 2.6%
Average fuel price before hedging (US cents/US gallon) 216.96 221.36 2.0%

TOTAL AIRLINE OPERATIONS (Note 2)

OPERATIONS

Average Manpower Equivalent (MPE) 42,024 43,224 2.8%
ATKs per MPE (000) 275.4 270.8 1.7%
Aircraft in service at period end (Note 3) 245 283 (38)


Note 1: The financial information for the comparative period has been restated
to disclose discontinued operations separate from continuing operations.
Operating and financial statistics relate to continuing operations unless
otherwise stated.

Note 2: Excludes non-airline activity companies, principally, Airmiles Travel
Promotions Ltd, BA Holidays Ltd and Speedbird Insurance Company Ltd.

Note 3: Aircraft numbers for last year include the BA Connect aircraft.


CONSOLIDATED INCOME STATEMENT (unaudited)
Six months ended
September 30 Better/
2007 m 2006 m (Worse)
Restated
Traffic Revenue
Passenger 3,871 3,877 (0.2)%
Cargo 290 318 (8.8)%
4,161 4,195 (0.8)%
Other revenue 295 297 (0.7)%
REVENUE 4,456 4,492 (0.8)%
Employee costs 1,069 1,151 7.1 %
Depreciation, amortisation and impairment 351 356 1.4 %
Aircraft operating lease costs 33 42 21.4 %
Fuel and oil costs 983 1,019 3.5 %
Engineering and other aircraft costs 222 208 (6.7)%
Landing fees and en route charges 269 274 1.8 %
Handling charges, catering and other operating costs 492 476 (3.4)%
Selling costs 183 199 8.0 %
Currency differences (2) 23 nm
Accommodation, ground equipment and IT costs 300 302 0.7 %


TOTAL EXPENDITURE ON OPERATIONS 3,900 4,050 3.7 %

OPERATING PROFIT 556 442 25.8 %

Fuel derivative gains/(losses) 15 (25) nm
Finance costs (81) (71) (14.1)%
Finance income 56 63 (11.1)%
Financing income and expense relating to pensions 26 (8) nm
Retranslation credits on currency borrowings 1 9 (88.9)%
Profit on sale of property, plant and equipment and investments

13 49 (73.5)%
Share of post-tax profits in associates accounted for using
the equity method 5 nm
Income relating to fixed asset investments 2 12 (83.3)%

PROFIT BEFORE TAX 593 471 25.9 %

Tax (106) (69) (53.6)%


PROFIT AFTER TAX FROM CONTINUING OPERATIONS 487 402 21.1 %

Loss from discontinued operations (after tax) (2) (80) 97.5 %

PROFIT AFTER TAX 485 322 50.6 %

Attributable to:
Equity holders of the parent 478 315 51.7 %
Minority interest 7 7
485 322 50.6 %

EARNINGS PER SHARE
Continuing operations:
Basic 41.7p 34.8p 19.8 %
Fully diluted 41.3p 34.4p 20.1 %

Discontinued operations:
Basic (0.1)p (7.0)p (98.6)%
Fully diluted (0.1)p (7.0)p (98.6)%

Total:
Basic 41.6p 27.8p 49.6 %
Fully diluted 41.2p 27.4p 50.4 %

nm: Not meaningful




CONSOLIDATED BALANCE SHEET (unaudited)
September 30 March 31
2007 m 2007 m
NON-CURRENT ASSETS
Property, plant and equipment
Fleet 6,067 6,153
Property 959 932
Equipment 277 272
7,303 7,357

Goodwill 40 40
Landing rights 152 139
Software 29 33
221 212

Investments in associates 130 125
Other investments 95 107
Employee benefit assets 109 116
Other financial assets 40 28

TOTAL NON-CURRENT ASSETS 7,898 7,945

NON-CURRENT ASSETS HELD FOR SALE 8

CURRENT ASSETS AND RECEIVABLES
Inventories 86 76
Trade receivables 647 654
Other current assets 427 346

Other current interest bearing deposits 1,490 1,642
Cash and cash equivalents 266 713
1,756 2,355

TOTAL CURRENT ASSETS AND RECEIVABLES 2,916 3,431

TOTAL ASSETS 10,814 11,384

SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Issued share capital 288 288
Share Premium 935 933
Investment in own shares (9) (10)
Other reserves 1,520 1,000

TOTAL SHAREHOLDERS' EQUITY 2,734 2,211

MINORITY INTEREST 200 200

TOTAL EQUITY 2,934 2,411

NON-CURRENT LIABILITIES
Interest bearing long-term borrowings 2,767 2,929
Employee benefit obligations 478 1,142
Provisions for deferred tax 1,032 930
Other provisions 243 153
Other long-term liabilities 188 194

TOTAL NON-CURRENT LIABILITIES 4,708 5,348

CURRENT LIABILITIES
Current portion of long-term borrowings 402 417
Trade and other payables 2,588 2,744
Current tax payable 21 54
Short-term provisions 161 410

TOTAL CURRENT LIABILITIES 3,172 3,625

TOTAL EQUITY AND LIABILITIES 10,814 11,384





CONSOLIDATED CASHFLOW STATEMENT (unaudited)

Six months ended
September 30 Better/
2007 m 2006 m (Worse)
Restated
CASH FLOWS FROM OPERATING ACTIVITIES
Operating profit 556 442 114
Operating loss from discontinued operations (97) 97
Depreciation, amortisation and impairment 351 470 (119)
Operating cash flow before working capital changes 907 815 92
Increase in inventories, trade and other receivables (25) (12) (13)
Decrease in trade and other payables and provisions (249) (220) (29)
Payment to the DOJ for part settlement of competition investigation

(149) (149)
Cash payment to NAPS pension scheme (560) (560)
Other non-cash movements 3 3

Cash generated from operations (73) 586 (659)
Interest paid (91) (91)
Taxation (51) (56) 5

NET CASH FLOW FROM OPERATING ACTIVITIES (215) 439 (654)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (280) (139) (141)
Purchase of intangible assets (17) (7) (10)
Proceeds from sale of other investments 52 (52)
Proceeds from sale of property, plant and equipment 10 4 6
Proceeds from sale of associated companies 3 (3)
Interest received 60 41 19
Interest income from other investments 4 (4)
Dividends received 2 2
Decrease in interest bearing deposits 148 10 138

NET CASH FLOW FROM INVESTING ACTIVITIES (77) (30) (47)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term borrowings 79 79
Repayment of borrowings (23) (41) 18
Payment of finance lease liabilities (206) (174) (32)
Exercise of share options 2 30 (28)
Distributions made to holders of perpetual securities (7) (7)

NET CASH FLOW FROM FINANCING ACTIVITIES (155) (192) 37

Net (decrease)/increase in cash and cash equivalents (447) 217 (664)
Net foreign exchange difference (6) 6
Cash and cash equivalents at April 1 713 398 315

CASH AND CASH EQUIVALENTS AT SEPTEMBER 30 266 609 (343)



STATEMENT OF CHANGES IN EQUITY (unaudited)
For the period ended September 30, 2007

Invest- Total
ment Share-
Share Share in own Other holders' Minority Total
capital premium shares reserves equity interest equity
million

At April 1, 2007 288 933 (10) 1,000 2,211 200 2,411

Profit for the period 478 478 478
Exchange differences
and other movements 5 5 5
Net movement on cash
flow hedges 40 40 40
Cost of share based
payment 3 3 3
Tax effect of share
options (4) (4) (4)

Total income and
expense for the period 522 522 522
Exercise of share
options 1 (1)
Issue of shares 2 2 2
Net losses on
available-for-sale
financial assets (1) (1) (1)

At September 30, 2007 288 935 (9) 1,520 2,734 200 2,934


For the period ended September 30, 2006
Invest- Total
ment Share-
Share Share in own Other holders' Minority Total
capital premium shares reserves equity interest equity
million

At April 1, 2006 283 888 690 1,861 213 2,074

Profit for the period 315 315 315
Exchange differences
and other movements (4) (4) (2) (6)
Net movement on cash
flow hedges (31) (31) (31)
Cost of share based
payment 5 5 5
Tax effect of share
options 8 8 8
Share of other (7) (7) (7)
movements in reserves
of associates

Total income and
expense for the period 286 286 (2) 284
Exercise of share
options (1) (1) (1)
Issue of shares 3 22 25 25
Net losses on
available-for-sale
financial assets (4) (4) (4)

At September 30, 2006 286 910 971 2,167 211 2,378



NOTES TO THE ACCOUNTS (unaudited)
For the period ended September 30, 2007

1 CORPORATE INFORMATION

The Group's interim condensed consolidated financial statements for the six
months ended September 30, 2007 were authorised for issue by the Board of
Directors on November 1, 2007. British Airways Plc (the Company) is a public
limited company incorporated and domiciled in England and Wales. The Company's
ordinary shares are traded on the London Stock Exchange.

2 BASIS OF PREPARATION

The basis of preparation and accounting policies set out in the Annual Report
and Accounts for the year ended March 31, 2007 have been applied in the
preparation of these summary financial statements. These are in accordance with
the recognition and measurement criteria of International Financial Reporting
Standards (IFRSs)* as adopted by the European Union (EU) and with those of the
Standing Interpretations issued by the International Financial Reporting
Interpretations Committee (IFRIC) of the International Accounting Standards
Board (IASB). References to 'IFRS' hereafter should be construed as references
to IFRSs as adopted by the EU. These interim financial statements have been
prepared in accordance with the Disclosure and Transparency Rules (DTR) of the
Financial Services Authority and with International Accounting Standard (IAS)
34, 'Interim Reporting'.

* For the purposes of these statements IFRS also include International
Accounting Standards.

3 ACCOUNTING POLICIES

The accounting policies and methods of calculation adopted are consistent with
those of the annual financial statements for the year ended March 31, 2007, as
described in those annual financial statements.

The income statement for the comparative period has been restated to disclose
discontinued operations separate from continuing operations. The comparative
information on the consolidated cash flow statement for the half year ended
September 30, 2006 has been restated to reflect a reduction of 499 million in
cash and cash equivalents, with an offset to other current interest bearing
deposits, due to a change in accounting policies. Prior to the year ended March
31, 2007 accounts, the Group classified deposits with a qualifying financial
institution maturing within three months of the balance sheet date as cash and
cash equivalents.

The Group now only classifies deposits maturing within three months of the
acquisition date as cash and cash equivalents. Additionally, our financial
statements for the prior period include reclassifications that were made to
conform to the current period presentation. Those reclassifications did not
impact our reported profit after tax or shareholders' equity.

The following new standards, amendments to standards, or interpretations are
mandatory for the first time for the financial year ending March 31, 2008:

* IAS 1 Amendment, 'Presentation of Financial Statements', effective for
annual periods beginning on or after January 1, 2007, which requires additional
disclosures on the Company's objectives, policies and processes for managing
capital. As this interim report contains only condensed financial statements,
disclosures required by IAS 1 will be given in the annual financial statements.

* IFRIC 8, 'Scope of IFRS 2 - Group and treasury share transactions',
effective for annual periods beginning on or after May 1, 2006. Management does
not expect this interpretation to impact the Group.


* IFRIC 9, 'Reassessment of embedded derivatives', effective for annual
periods beginning on or after January 1, 2007, which states that the date to
assess the existence of an embedded derivative is the date that an entity first
becomes party to the contract, with reassessment only if there is a change to
the contract that significantly modifies the cash flows. Management does not
expect this interpretation to impact the Group.

* IFRIC 10, ' Interims and impairment', effective for annual periods beginning
on or after November 1, 2006. This interpretation has not had any impact on the
timing or recognition of impairment losses as the Group already accounted for
such amounts using principles consistent with IFRIC 10.

* IFRIC 11, ' IFRS 2 - Group and treasury share transactions', effective for
annual periods beginning on or after March 1, 2007. Management does not expect
this interpretation to impact the Group.

* IFRS 7, 'Financial instruments: Disclosures', effective for annual periods
beginning on or after January 1, 2007. As this interim report contains only
condensed financial statements, full IFRS 7 disclosures are not required at this
stage. The full IFRS 7 disclosures, including the sensitivity analysis to
market risk and capital disclosures required by IFRS 7, will be given in the
March 31, 2008 financial statements.

The following new standards, amendments to standards and interpretations have
been issued, but are not effective for the financial year ending March 31, 2008:

* IFRIC 12, 'Service concession arrangements', effective for annual periods
beginning on or after January 1, 2008. Management does not expect this
interpretation to impact the Group.

* IFRIC 13, 'Customer Loyalty Programmes', effective for annual periods
beginning on or after July 1, 2008. IFRIC 13 addresses accounting by entities
that operate or otherwise participate in customer loyalty programmes for their
customers. IFRIC 13 applies to sales transactions in which the entities grant
their customers award credits that, subject to meeting any further qualifying
conditions, the customers can redeem in the future for free or discounted goods
or services. The interpretation requires that an entity recognise credits that
it awards to customers as a separately identifiable component of revenue, which
would be deferred at the date of the initial sale. IFRIC 13 will become
mandatory for the Group's consolidated financial statements beginning April 1,
2009, with earlier application permitted. Management has not yet determined the
potential effect of this interpretation.

* IFRIC 14, 'IAS 19 The limit on a defined benefit asset, minimum funding
requirement and their interaction', effective for annual periods beginning on or
after July 1, 2008. Management has not yet determined the potential effect of
this interpretation.

* IFRS 8, 'Operating segments', effective for annual periods beginning on or
after January 1, 2009, subject to EU endorsement. Management does not currently
foresee any significant changes to the Group's business segments.

4 SEASONALITY OF OPERATIONS

Due to the seasonal nature of the airline industry, higher revenues and
operating profits are usually expected in the first half of the financial year
than in the latter six months. Higher revenues during the first six months are
mainly attributed to the increased demand for travel during the holiday season.

5 SEGMENT INFORMATION

a Business segments

For the period ended September 30, 2007
Continuing Operations
Non-
Airline airline Un- Disc
million business business allocated Total Ops * Total

Revenue
Sales to external customers 4,360 96 4,456 4,456
Inter-segment sales 17 17 17

Segment revenue 4,377 96 4,473 4,473

Segment result 551 5 556 556

Unallocated and other non-
operating income/(expense) 17 17 17
Profit before tax and finance
costs 551 5 17 573 573
Net finance costs 2 2 2
Profit/(loss) on sale of 13 (2) 11
assets 13
Share of associates' profit 5 5 5
Income tax expense (106) (106) (106)

Profit/(loss) after tax 487 (2) 485

Assets and liabilities
Segment assets 10,561 123 10,684 10,684
Investment in associates 130 130 130

Total assets 10,561 123 130 10,814 10,814

Segment liabilities 3,322 336 3,658 3,658
Unallocated liabilities 4,222 4,222 4,222

Total liabilities 3,322 336 4,222 7,880 7,880

Other segment information
Tangible assets - additions 276 276 276
Intangible assets - additions 24 24 24
Depreciation, amortisation
and impairment 350 1 351 351


* Discontinued Operations

For the period ended September 30, 2006
Continuing Operations
Non-
Airline airline Un- Disc
million business business allocated Total Ops * Total

Revenue
Sales to external customers 4,386 106 4,492 138 4,630
Inter-segment sales 20 1 21 1 22

Segment revenue 4,406 107 4,513 139 4,652

Segment result 410 32 442 (97) 345

Unallocated and other non-
operating income/(expense) (13) (13) (13)
Profit/(loss) before tax
and finance costs 410 19 429 (97) 332
Net finance costs (7) (7) (3) (10)
Profit on sale of assets 49 49 49
Income tax (expense)/credit (69) (69) 20 (49)

Profit/(loss) after tax 402 (80) 322

Assets and liabilities
Segment assets 11,717 111 11,828 11,828
Investment in associates 103 103 103

Total assets 11,717 111 103 11,931 11,931

Segment liabilities 4,520 333 4,853 4,853
Unallocated liabilities 4,700 4,700 4,700

Total liabilities 4,520 333 4,700 9,553 9,553

Other segment information
Tangible assets - additions 128 1 129 129
Intangible assets - additions 13 13 13
Depreciation, amortisation
and impairment 355 1 356 114 470
Exceptional items 32 32 32


* Discontinued Operations

b Geographical segments - by area of original sale

Continuing Discontinued Total
Operations Operations
million 2007 m 2006 m 2007 m 2006 m 2007 m 2006 m

Europe 2,747 2,666 133 2,747 2,799
United Kingdom 2,139 2,050 109 2,139 2,159
Continental Europe 608 616 24 608 640

The Americas 942 992 4 942 996
Africa, Middle East and
Indian sub-continent 419 457 1 419 458
Far East and Australasia 348 377 348 377


Revenue 4,456 4,492 138 4,456 4,630



6 OPERATING PROFIT
There were no items of an unusual nature that have been charged to operating profit during the six month period
(2006: restructuring provision 32 million).


7 FINANCE COSTS / INCOME
Six months ended
September 30
2007 m 2006 m
FINANCE COSTS
Interest payable on bank and other loans and finance charges
payable under finance leases and hire purchase contracts 87 88
Release of prior year provisions (15)
Interest capitalised (6) (2)
Total finance costs 81 71

FINANCE INCOME
Bank interest receivable 56 63
Total finance income 56 63

FINANCING INCOME AND EXPENSE RELATING TO PENSIONS
Financing income and expense relating to pensions 26 (8)
Total financing income and expense relating to pensions 26 (8)

Retranslation credits on currency borrowings 1 9


8 PROFIT/(LOSS) ON SALE OF FIXED ASSETS AND INVESTMENTS
Six months ended
September 30
2007 m 2006 m
Net profit on the disposal of WNS 48
Net profit on the disposal of property, plant and equipment 13 2
Net loss on disposal of interest in associates (1)
13 49


Included in the net profit on the disposal of property, plant and equipment is
a 12 million gain resulting from the release of certain guarantees that were
provided for relating to the previous sale of 6 Boeing 767 aircraft.


9 TAX

The tax charge for the half year is 106 million, which is a rate of 18% on
the profit before tax. The current tax payable on the half year profits is 18
million and deferred tax is 88 million. The deferred tax charge has benefited
from a one-off credit of 72 million arising from the reduction in the UK
corporation tax from 30% to 28% which is effective from April 1, 2008. Excluding
the one-off credit, the tax rate for the period would have been 30%.

10 EARNINGS PER SHARE

Basic earnings per share for the six months ended September 30, 2007 are
calculated on a weighted average of 1,150,012,000 ordinary shares (September 30,
2006: 1,135,788,000; March 31, 2007: 1,141,133,000) as adjusted for shares held
for the purposes of employee share ownership plans including the Long-Term
Incentive Plan. Diluted earnings per share for the quarter ended September 30,
2007 are calculated on a weighted average of 1,160,048,000 ordinary shares
(September 30, 2006: 1,148,626,000; March 31, 2007: 1,151,943,000).

The number of shares in issue at September 30, 2007 was 1,152,593,000
(September 30, 2006: 1,141,379,000; March 31, 2007: 1,151,575,000) ordinary
shares of 25 pence each.

11 PROPERTY, PLANT AND EQUIPMENT

During the six months ended September 30, 2007, the Group acquired assets with

a cost of 276 million (September 30, 2006: 129 million).

Assets with a net book value of 9 million were disposed of by the Group
during the six months ended September 30, 2007 (September 30, 2006: 2 million)
resulting in a net gain on disposal of 1 million (September 30, 2006: 2
million).


12 RECONCILIATION OF MOVEMENT IN NET DEBT TO CHANGES IN CASH FLOWS
Six months ended
September 30
2007 m 2006 m

(Decrease)/increase in cash and cash equivalents during the period (447) 217
Net cash used in repayment of long-term borrowings 229 215
Decrease in interest bearing deposits (148) (10)

Change in net debt resulting from cash flows (366) 422
New finance leases taken out and hire purchase arrangements made (79)
Exchange and other non cash movements 23 94

Movement in net debt during the period (422) 516
Net debt at April 1 (991) (1,641)

Net debt at September 30 (1,413) (1,125)


Net debt comprises the current and non-current portions of long-term
borrowings, convertible long-term borrowings and overdrafts, less cash and cash
equivalents plus interest-bearing short-term deposits.

13 SHARE OPTIONS

During the period, the Group awarded a new performance share plan for its
senior executives. 1,443,888 options over shares were awarded. No payment is
due upon exercise of the options. The fair value of options granted during the
six months ended September 30, 2007 was estimated on the date of grant using the
following assumptions:

Expected volatility (%) 24
Expected life (years) 3
Weighted average share price () 4.025



14 ANALYSIS OF LONG-TERM BORROWINGS
September 30 March 31
2007 m 2007 m

Interest bearing long-term borrowings comprise:
Loans 789 878
Finance Leases 1,307 1,275
Hire purchase arrangements 671 776

2,767 2,929

Current portion of long-term borrowings comprise:
Loans 131 68
Finance Leases 61 80
Hire purchase arrangements 210 269

402 417

Total borrowings 3,169 3,346



15 DISCONTINUED OPERATIONS

The 2 million loss from discontinued operations is attributed to the
resolution of certain uncertainties that arose from the terms of the disposal
transaction, primarily purchase price adjustments and adjustments to the
restructuring provision previously reported within discontinued operations.

16 CONTINGENT LIABILITIES

There were contingent liabilities at September 30, 2007 in respect of
guarantees and indemnities entered into as part of, and claims arising from, the
ordinary course of business, upon which no material losses are likely to arise.
A number of other lawsuits and regulatory proceedings are pending, the outcome
of which in the aggregate is not expected to have a material effect on the
Group's financial position or results of operations.

The Group has guaranteed certain borrowings, liabilities and commitments which
at September 30, 2007 amounted to 166 million (March 31, 2007: 168 million).

17 COMPETITION INVESTIGATION

The Company has settled US$300 million (149 million) in respect of all
investigations into its cargo and passenger business in the US with the
Department of Justice. It has agreed a settlement of 121.5 million with the
Office of Fair Trading in respect of longhaul passenger surcharges.

There are on-going investigations into the Company's cargo surcharges by the
European Commission and other jurisdictions. These investigations are likely to
continue for some time. The Company is also subject to related class action
claims. The final amount required to pay the remaining claims and fines is
subject to uncertainty. A detailed breakdown of the remaining provision is not
presented as it may seriously prejudice the position of the Company in these
regulatory investigations and potential litigation.


18 RELATED PARTY TRANSACTIONS

The Group has had transactions in the ordinary course of business during the year under review with related
parties.
Six months ended
September 30
2007 m 2006 m
Associates:
Sales to associates 23 26
Purchases from associates 24 78

September 30 March 31
2007 m 2007 m
Associates:
Amounts owed to associates 1 1
Amounts owed by associates 2


As is common practice in the airline industry, the Company and Iberia from
time to time carry each other's passengers travelling on the other airlines'
tickets. The settlement between related carriers is actioned through the IATA
Clearing House, of which the airlines are members. These transactions have not
been disclosed as sales or purchases between related parties above.

* Associates

Iberia, Lineas Aereas de Espana, S.A. ('Iberia')

A wholly owned subsidiary in the Group has a 9.95% investment in Iberia.
Areas of opportunity for co-operation have been identified, and work continues
to pursue and implement these. Sales and purchases between related parties are
made at normal market prices and outstanding balances are unsecured, interest
free and cash settlement is expected within the standard settlement terms
specified by the IATA Clearing House.

As at September 30, 2007, the net trading balance owed from Iberia to the
Group amounted to 1.6 million (March 31, 2007 amounts owed to Iberia: 0.4
million).

* Directors' and officers' loans and transactions

No loans or credit transactions were outstanding with directors or officers of
the Group at the end of September 2007 or arose during the period that need to
be disclosed in accordance with the requirements of Schedule 6 to the Companies
Act 1985.

In addition to the above, the Group also has transactions with related parties
which are conducted in the normal course of airline business. These include the
provision of airline and related services.

The Group has not provided or benefited from any guarantees for any related
party receivables or payables. During the period ended September 30, 2007 the
Group has not made any provision for doubtful debts relating to amounts owed by
related parties (September 30, 2006: nil).

19 CAPITAL EXPENDITURE COMMITMENTS

Capital expenditure authorised and contracted for but not provided for in the
accounts amounts to 635 million (March 31, 2007: 554 million).

The outstanding commitments include 565 million for the acquisition of four
Boeing 777 aircraft scheduled for delivery in 2009 and 21 Airbus A320 and A321
family aircraft scheduled for delivery over the next three years, but exclude
the recent announcement of the selection of 12 Airbus A380 and 24 Boeing 787
aircraft, which have been authorised but not yet contracted for.

20 EVENTS AFTER THE BALANCE SHEET DATE

On October 25, 2007, the Group announced that it will end its franchise
agreements with both GB Airways and Loganair. The Group will end its
relationship with GB Airways in March 2008 and with Loganair from October 2008.
After October 2008, the Group will begin a codeshare arrangement with Loganair.

On October 26, 2007, the Group signed a US$1.7 billion secured aircraft
financing facility with a 15 year term. The facility will serve as financing
for the Gatwick and Heathrow fleet replacement programmes.

21 OTHER INFORMATION

The figures for the six months ended September 30, 2007 and 2006 are unaudited
and do not constitute full accounts within the meaning of Section 240 of the
Companies Act 1985. The financial statements for the year ended March 31, 2007
which have been delivered to the Registrar of Companies and on which the
auditors have issued an unqualified audit report, did not contain a statement
under Section 237 of the Companies Act 1985.


STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors confirm that this condensed set of financial statements has been
prepared in accordance with IAS 34 as adopted by the European Union, and that
the interim management report herein includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8.

The directors of British Airways Plc are listed in the Group's Annual Report for
the year ended March 31, 2007.

By order of the Board

Willie Walsh
Chief Executive

Keith Williams
Chief Financial Officer

November 1, 2007



INDEPENDENT REVIEW REPORT TO BRITISH AIRWAYS PLC

We have been engaged by the Group to review the condensed set of financial
statements in the half-yearly financial report for the six months ended
September 30, 2007 which comprises the Consolidated Income Statement,
Consolidated Balance Sheet, Consolidated Cash Flow Statement, Consolidated
Statement of Change in Shareholders' Equity and the related notes 1 to 21. We
have read the other information contained in the half-yearly financial report
and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.

This report is made solely to the Group in accordance with guidance contained in
ISRE 2410 (UK and Ireland) 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Auditing Practices Board.
To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Group, for our work, for this report, or
for the conclusions we have formed.

Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority

As disclosed in Note 2, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, 'Interim Financial Reporting', as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Group a conclusion on the condensed set
of financial statements in the half-yearly financial report based on our review

Scope of Review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410,'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended September 30, 2007 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.

Ernst & Young LLP
London


November 1, 2007


AIRCRAFT FLEET
(unaudited and outwith the scope of the Independent Review)

Number in service with Group companies at September 30, 2007

On balance Off balance Total Changes
sheet since
sheet operating leases Sept 2007 March 2007 Future Options
deliveries
fixed assets
(Note 5) (Note 6)
Airline Operations (Note 1)

Boeing 747-400 57 57
Boeing 787 24 18
Boeing 777 40 3 43 4
Boeing 767-300 21 21
Boeing 757-200 13 13
Airbus A319 21 12 33
Airbus A320 (Note 2) 7 18 25 (1) 20 32
Airbus A321 10 10 3 1
Airbus A380 12 7
Boeing 737-300 5 5
Boeing 737-400 19 19
Boeing 737-500 9 9
Avro RJ100 (Note 3) 10 10 1

Group Total (Note 4) 188 57 245 3 61 57


Notes:

1. Includes those operated by British Airways Plc and BA Cityflyer.

2. Certain future deliveries and options include reserved delivery positions,
and may be taken as any A320 family aircraft.

3. Excludes six Avro RJ100 aircraft sub-leased to Swiss International Airlines.

4. Excludes two British Aerospace ATP's stood down pending sale, and 10
Jetstream 41s sub-leased to Eastern Airways.

5. Future year deliveries of aircraft have increased by 12 Airbus A380 and 24
Boeing 787 as part of the longhaul replacement programme and capacity growth.

6. Future year options have increased by seven Airbus A380 and 18 Boeing 787

BA facing multi-mln stg compensation bill for cancelled flights - AFX

LONDON (Thomson Financial) - British Airways PLC is facing a multi-million pound compensation bill after failing to keep secret a deal in which it agreed to pay passengers 430 stg each for cancelling their flights, the Times reported.

The airline has agreed to pay compensation and legal costs for two passengers stranded in Cape Town after their flight was cancelled on Feb 2, the newspaper reported.

BA tried to keep the offer secret and prevent other passengers from claiming by insisting the passengers and claims handling company signed a confidentiality agreement.

However, the Netherlands-based company, EUClaim, has refused to sign the agreement and yesterday told BA it would apply to have the case heard in a Dutch court, saying it wanted the hearing to establish a ruling saving passengers from having to spend a great deal of time fighting their cases.

The deal opens the way for thousands of passengers left stranded in February due to an industrial dispute to claim against the airline, the Times said.

BA told the Times it had made the offer of compensation to EUClaim without admitting liability.

'We notified passengers we were cancelling flights and gave them the option to rebook or refund their flight,' a spokesman said.

British Airways is very irresponsible demonstrating poor management. BA will drop further to 280p imo.

hlyeo98: You are boring. You hate BA. Get over it.

It will not drop to 280,if it does it will be an awsome buying opportunity.Its a great stock to trade in,my BEST money maker overall,with the exception of OXS,my money is much safer here.
BA management have steered the ship well given the huge challenges they have faced in the past,they are one of the worlds MOST PROFITABLE airlines.

just think about. RYANAIR AND EASYJET.

easyJet said today it carried 13.2% more passengers last month than it did in November 2006.

The Luton-based low cost airline said it carried 2.88 million passengers last month compared to the 2.55 million that flew with the airline during the same period last year.

easyJet's load factor, how full its aircraft were, was up 0.3 percentage points on the same month last year to 80.8%.