International Airlines Regulatory News (IAG)

AUGUST 2017 - GROUP TRAFFIC AND CAPACITY STATISTICS

§ Group traffic in August, measured in Revenue Passenger Kilometres, increased by 1.2 per cent versus August 2016; Group capacity measured in Available Seat Kilometres rose by 0.4 per cent.

§ Group premium traffic for the month of August increased by 1.9 per cent compared to the previous year.

5 September 2017

STRATEGIC DEVELOPMENTS

On 17 August, LEVEL announced it was the first airline brand to introduce innovative 'Pair & Pay' technology allowing customers to browse and buy products onboard from their seats using personal devices. The technology lets customers order items at any point in the flight and is very simple to use. To speed up the process even further, the LEVELair app allows customers to set up their own account and store a payment card to make onboard purchases.

On 31 August, Aer Lingus launched its Saver Fares which are the airline's new low fares on direct flights between Ireland and North America. Saver Fares include one piece of 10kg cabin baggage, in-flight entertainment and on-board meals. Customers can then choose from a range of added on extras from checked baggage, seat selection, blanket and headphones at additional cost.

LEI: 959800TZHQRUSH1ESL13

This announcement contains inside information and is disclosed in accordance with the company's obligations under the Market Abuse Regulation (EU) No 596/2014.

Enrique Dupuy, Chief Financial Officer

Forward-looking statements:

Certain statements included in this report are forward-looking and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements.

Forward-looking statements can typically be identified by the use of forward-looking terminology, such as "expects", "August", "will", "could", "should", "intends", "plans", "predicts", "envisages" or "anticipates" and include, without limitation, any projections relating to results of operations and financial conditions of International Consolidated Airlines Group S.A. and its subsidiary undertakings from time to time (the 'Group'), as well as plans and objectives for future operations, expected future revenues, financing plans, expected expenditures and divestments relating to the Group and discussions of the Group's Business plan. All forward-looking statements in this report are based upon information known to the Group on the date of this report. The Group 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 forward-looking statements in this report 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. Further information on the primary risks of the business and the risk management process of the Group is given in the Annual Report and Accounts 2016; these documents are available on www.iagshares.com.

1 Group performance comprises Aer Lingus, British Airways, Iberia (including Iberia Express) and Vueling. Vueling traffic is currently accounted as non-premium traffic

2 Domestic includes routes within UK, Spain, Ireland and Italy