International Airlines Regulatory News (IAG)

JULY 2013 - IAG GROUP TRAFFIC AND CAPACITY STATISTICS

§ In July 2013, Group traffic measured in Revenue Passenger Kilometres increased by 6.6 per cent versus July 2012 (down 2.8 per cent on a pro-forma basis); Group capacity measured in Available Seat Kilometres rose by 8.5 per cent (down 1.7 per cent on a pro-forma basis).

§ Group premium traffic for the month of July increased by 0.4 per cent compared to the previous year, on falling capacity.

§ Traffic in long haul is still influenced by the Group policy to improve unit revenues through yield, rather than load, as well as by the timing of Ramadan.

§ Underlying market conditions remain unchanged from those described at the publication of Quarter Two results on 2 August.

6 August 2013

STRATEGIC DEVELOPMENTS

On 2 August, IAG announced that the delisting offer for the 9.49 per cent of Vueling shares that the IAG Group did not own was accepted by 73.86 per cent of the shares subject to the offer. Following settlement, IAG Group will own 97.52 per cent of Vueling which will be delisted from the Spanish stock exchanges.

On 4 July, the labour division of the Spanish High Court ruled that the mediation agreement reached with 93 per cent of Iberia employees is applicable to all employee groups.

British Airways has received the first of its 12 Airbus A380 firm orders. A further two A380s will be delivered in 2013 plus five in 2014. The aircraft will begin commercial long-haul flights to Los Angeles from 24 September. The next two routes after Los Angeles will be Hong Kong (October 2013) and Johannesburg (February 2014).

Iberia's commercial initiatives continue with the retrofit of A340-600s on routes to Latin America. In addition, it launched a new baggage tag online service, becoming the first carrier worldwide to offer this facility and updated its website.

Certain information included in these statements is forward-looking and involves risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements.

Forward-looking statements include, without limitation, projections relating to results of operations and financial conditions and International Consolidated Airlines Group S.A. (the 'Group') plans and objectives for future operations, including, without limitation, discussions of the Group's Business Plan, expected future revenues, financing plans and expected expenditures and divestments. 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 Group's forward-looking statements 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 2012; this document is available on www.iagshares.com.

1 Group performance comprises British Airways, Iberia (including Iberia Express) and Vueling. Year to Date 2013 includes Vueling from 26th April 2013. Vueling traffic is currently accounted as non-premium traffic.

2 Monthly pro-forma includes Vueling in the baseline.

3For Year to Date pro-forma, Vueling data is only included from 26th April 2012/13.