International Airlines Regulatory News (IAG)

Share Buy-Back Programme

Further to the announcement by International Consolidated Airlines Group, S.A. ("IAG") on 23 February 2018 that it intends to carry out a share buy-back of €500 million during 2018, IAG announces that it has now agreed the terms of this share buy-back programme (the "Programme"). The Programme will be carried out in accordance with the authorisation granted at the Annual General Shareholders' Meeting held on 15 June 2017 and the provisions of the Market Abuse Regulation (EU) 596/2014 and Commission Delegated Regulation (EU) 2016/1052.

The Programme will have the following characteristics:

a) Purpose: the reduction of IAG's share capital (subject to the approval of such reduction by its Shareholders' Meeting).

b) Regulated market: the shares will be purchased on both the London Stock Exchange and the Spanish Stock Exchanges (each an "Exchange").

c) Maximum pecuniary amount allocated to the programme: €500,000,000.

d) Maximum number of shares to be acquired: up to 185,000,000 shares, which represents 9 per cent of the IAG's share capital as at today's date (9 May 2018).

e) Maximum consideration per share: the shares will be purchased at a maximum price of the higher of the price of the last independent trade and the highest then current independent purchase bid on the relevant Exchange where the purchase is carried out.

f) Maximum volume per trading day: no more than 25 per cent of the average daily volume of the shares traded on the relevant Exchange in the 20 trading days preceding the date of purchase.

g) Duration: the Programme will start on 10 May 2018 and end no later than 28 December 2018.

The shares purchased under the Programme will be held in treasury pending approval to cancel such shares being granted by IAG's Shareholders' Meeting.

Deutsche Bank AG has been engaged to implement the Programme. It will make the share purchases on IAG's behalf and make all trading decisions independently of, and uninfluenced by, IAG.

Enrique Dupuy de LômeChief Financial Officer

9 May 2018

LEI: 959800TZHQRUSH1ESL13