According to the Daily Mail, the airline announced that the fares would initially be offered on flights from Gatwick to five short-haul destinations - Amsterdam, Dubrovnik, Jersey, Tunis and Turin - with discounts ranging from £9 to £15 depending on the route.
The hand luggage only fares will allow BA to compete with budget airlines like Ryanair and Easyjet, who charge more for travellers checking luggage into the hold, thereby giving hand luggage passengers a better deal.
But with BA, customers get a two-bad hand luggage allowance, and the travel giant insisted those wishing to check bags in would not face higher fares to compensate for the cheaper alternatives.
Peter Simpson, director of Gatwick for BA, told the Mail: "The introduction of our hand baggage only fare is all about giving our customers more freedom to choose the kind of flying they want.
"Those who still want to check in a bag will simply pay the same price they do now."
Bob Atkinson, travel expert at Travelsupermarket.com, praised the move by the airline, saying it would give passengers the opportunity to enjoy the full "BA offering" of free on-board food and drink, and reward points while benefiting from cheaper fares.
The discounted fares will be available from 26 February.
What do you think? Can BA compete with the budget airlines with their new hand luggage discounts? Leave your comments below...