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The change in policy will mean those who have served in the Armed Forces can use their Veteran Card for travel within the UK.
The move is part of the support provided to veterans by the airline, which employs hundreds of ex-Military personnel in a range of roles from flying to engineering.
Sean Doyle, British Airways’ Chairman and CEO, said: “I’m incredibly proud of our colleagues who have served their country and of the professionalism, skill and experience they bring to our organisation.
“We know through our conversations with veterans that this card provides them with a way of maintaining a tangible link to their military careers.
“I’m delighted that we’ve been able to make this change as it underlines our commitment to recognising their sacrifice and service.”
Minister for Veterans and People, Alistair Carns OBE MC MP, said: “It is extremely fitting that the first airline to sign the Armed Forces Covenant is the first airline to make Veteran Cards a valid form of ID. We thank British Airways for their continued support of the Armed Forces Community, those who serve and have served make extraordinary sacrifices to ensure Britain is safe at home and secure abroad, and it is vital that they receive the recognition they deserve.
“The veteran card is an important tool to help veterans access the support that they need.”
Aviation Minister, Mike Kane, said: “Those who serve in our armed forces selflessly risk their lives to protect our country and offering them easier access to air travel is just one way of showing our deep gratitude for their service.
"British Airways is setting an excellent example in supporting our veterans, and I hope this inspires other airlines to follow their lead."
British Airways employs hundreds of veterans across the company and works directly with the Armed Forces on initiatives such as its managed pathway scheme, offering a structured career path for former military personnel, or those leaving the military, to achieve technical aviation qualifications to become licenced engineers with British Airways.
The company has also worked with the Armed Forces on managed path programmes for pilots, allowing a seamless transition for experienced military flight crew into commercial aviation.
While passports are not required for domestic UK travel, airlines are required to ask customers for valid photographic ID prior to boarding. British Airways already accepts ID cards for those currently serving in the Armed Forces and this addition will help ensure a seamless travel experience for veterans.
Other forms of ID accepted include a passport, driving licence (full or provisional), employment ID and residency card, among others.