International Airlines Regulatory News (IAG)

MAY 2017 - GROUP TRAFFIC AND CAPACITY STATISTICS

§ Group traffic in May, measured in Revenue Passenger Kilometres, increased by 1.8 per cent versus May 2016; Group capacity measured in Available Seat Kilometres rose by 0.9 per cent.

§ Group premium traffic for the month of May increased by 5.2 per cent compared to the previous year.

6 June 2017

STRATEGIC DEVELOPMENTS

On 27 May, British Airways was affected by a power failure leading to severe disruption to flights. The airline cancelled 479 flights (59 per cent of operations) on that day and 193 flights (23 per cent of operations) on 28 May. By 29 May, the airline was flying the vast majority of its schedule. An independent investigation will examine every aspect of the power failure. British Airways is working hard to compensate affected passengers as quickly as possible.

On 1 June, LEVEL began its twice per week service from Barcelona to Los Angeles. The inaugural flight on IAG's longhaul low cost airline brand was completely full with 314 passengers on board a new Airbus A330. On 2 June, LEVEL commenced its three per week service to San Francisco (Oakland). This was Spain's first longhaul low cost operation and is the first step towards LEVEL's expansion from other European cities. In 2018, LEVEL will increase its fleet to five aircraft. LEVEL's sales are well ahead of expectations in all markets with more than 134,000 tickets sold since its launch on 17 March.

In May, Iberia launched its new Premium Economy cabin on board its flights to Chicago, New York and Bogota.

On 3 May, British Airways announced that its new Club Europe cabin on domestic UK flights had proved a hit with nearly 70,000 customers choosing the premium service in the first six weeks of its operation.

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, (responsible for arranging the release of this announcement).

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", "may", "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