Washington, D.C. 20549

                        REPORT OF FOREIGN PRIVATE ISSUER

                FURNISHED PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
                       THE SECURITIES EXCHANGE ACT OF 1934

                                  19 May 2006

                               BRITISH AIRWAYS Plc
                               (Registrant's Name)

                                 Waterside HBA3,
                                   PO Box 365
                              Harmondsworth UB7 0GB
                                 United Kingdom

Indicate by check mark whether the registrant  files or will file annual reports
under cover of Form 20-F or Form 40-F.

                    Form 20-F   X             Form 40-F

Indicate by check mark if the  registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule101(b)(1)

Note:  Regulation  S-T Rule  101(b)(1) only permits the submission in paper of a
Form 6-K if submitted  solely to provide an attached  annual  report to security

Indicate by check mark if the  registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7)

Note:  Regulation  S-T Rule  101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other  document that the registrant
foreign  private  issuer  must  furnish  and make  public  under the laws of the
jurisdiction  in which the  registrant  is  incorporated,  domiciled  or legally
organised  (the  registrant's  "home  country"),  or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press  release,  is not required to be and has
not been distributed to the registrant's  security holders, and, if discussing a
material  event,  has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.

Indicate by check mark whether by furnishing the  information  contained in this
Form,  the  registrant  is  also  thereby  furnishing  the  information  to  the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

                             Yes              No   X

If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):


1. Pensions deficit


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorised.

                                             BRITISH AIRWAYS Plc

                                             By:   /s/_________________________
                                                   Name: Alan Buchanan
                                                   Title:Company Secretary
                                                   Date  19 May 2006

                                INDEX TO EXHIBITS

Exhibit No.1               Description

                           Pensions deficit


British Airways' accounting valuation of its main pension scheme, the New
Airways Pension Scheme (NAPS), showed a deficit of GBP2,070 million at March 31
2006, up GBP101 million on the previous year.

Keith Williams, the airline's chief financial officer, said, "The accounting
deficit reflects low long-term interest rates and has gone up despite the
company's increased contributions and strong equity markets."


Notes to editors

-        British Airways adopted International Financial Reporting Standards
(IFRS) on April 1, 2005.  The deficit is now accounted for under IAS19, rather
than FRS17.

-        In the company's accounts, of the GBP2,070 million, GBP1,587 million is
recognised on the balance sheet and GBP483 million is unrecognised.  The
unrecognised amount occurs as a result of a smoothing mechanism allowed under
IAS19 ("the corridor") in respect of changes in estimates in both scheme assets
and liability benefits earned.  The variations in estimates for asset returns
and discount rates are the principal factors impacting the deficit.

-        The company's pre-tax pension liability for all schemes in
deficit  increased from GBP2,191  million to GBP2,290  million.  Of the GBP2,290
million  GBP1,791  million is recognised on the balance sheet (GBP1,587  million
for NAPS and GBP204  million for other schemes in deficit) and GBP499 million is
unrecognised  (GBP483  million for NAPS and GBP16  million for other  schemes in

-        At March 31, 2005 the total NAPS IAS19 pre-tax deficit (recognised and
unrecognised) was GBP1,969 million.

-        The NAPS actuarial deficit at March 2003 was GBP928 million.

-        The airline's cash contribution to NAPS in 2005/6 was GBP246 million.

The airline's proposal on pensions announced on March 23, 2006 includes:

-        Keeping a final salary pension scheme with no changes to past service
pension benefits, no increase in staff contribution rates but changes to
members' future benefits.

-        Changes include raising the normal retirement age, a slower accrual
rate, pensionable pay increases capped at no more than inflation and pension
increases on retirement capped at 2.5 per cent each year, with the company and
staff to share impact of changes in life expectancy.

-        In return, the airline will make a payment of GBP500 million into NAPS
after the changes are accepted.

Certain information included in this statement 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
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 itemise 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.  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 2005.