International Airlines Regulatory News (IAG)

NOVEMBER 2017 - GROUP TRAFFIC AND CAPACITY STATISTICS

§ Group traffic in November, measured in Revenue Passenger Kilometres, increased by 7.0 per cent versus November 2016; Group capacity measured in Available Seat Kilometres rose by 4.7 per cent.

§ Group premium traffic for the month of November increased by 7.3 per cent compared to the previous year.

5 December 2017

STRATEGIC DEVELOPMENTS

On 28 November, IAG announced that its longhaul low cost airline brand LEVEL will launch flights from Paris Orly to Montreal*, New York, Guadeloupe and Martinique from July 2018. Two Airbus A330-200 aircraft will be based at Orly airport. LEVEL's Paris flights will be operated by staff who currently work for IAG's French airline OpenSkies which is based at the airport. The OpenSkies brand will cease to operate at the end of next summer and all its staff will operate LEVEL flights. LEVEL will also launch a new route from Barcelona to Boston on March 28, 2018 and will add a third A330-200 aircraft to its Barcelona fleet later in the summer.

On 17 November, Aer Lingus announced that it will start flights between Dublin and Seattle on 18 May 2018. This is the sixth new transatlantic route announced by the airline since IAG acquired it in August 2015, bringing its transatlantic route total to 15.

(*) Subject to the consent of the Canadian Transport Agency.

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", "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