The undisclosed fee will be given to children in East Africa after employee Simon Wood, who was accused of assaulting the minors, committed suicide in 2013, the BBC said.
Wood, 54, of Potters Bar, Hertfordshire, was hit by a train days before he was due to appear in a UK court charged with the abuse in Africa and the UK.
BA has agreed to the settlement but has denied its liability for the offences.
Lawyers of the affected families have claimed the airline is responsible due to the alleged victims being assaulted by Wood while he was on stopovers working for the company in the region.
A mother of two of the alleged victims, aged 9 and 16, claims the pilot took them all to the Intercontinental Hotel in Nairobi during stopovers in Kenya and gave them gifts.
She also described how he would bathe the children.
At the time of his death, Wood was facing charges of one count of indecent assault of a girl under 16, two counts of making indecent photographs of a child and a further count of possessing indecent images of a child.
In July 2014 an inquest ruled that Wood had taken his own life following the accusations, which also featured allegations that he abused children in Africa while doing voluntary work for the UK-based airline.
Furthermore, he is alleged to have molested under-aged girls in schools and orphanages in Kenya, Uganda and Tanzania between 2003 and 2013, according to law firm Leigh Day.
