International Airlines Group Investor Presentation — May 2020

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IAG results presentation

7 May 2020Highlights

Willie Walsh, Chief Executive Officer3Substantial loss from March due to COVID -19

•Unusual quarterly pre -exceptional operating loss of €535m compared to a profit of €135m last year

•The first two months were slightly loss -making but similar to last year despite the suspension of flights to China from the end of January due to COVID

•All of the reduction in the operating result occurred in March following further government imposed travel

•Most of the reduction in the operating result was incurred by British Airways, followed by Iberia and Aer Lingus, while Vueli ng experienced a modest

increase in its operating loss

•Exceptional loss of €1.3bn on fuel and foreign currency hedges due to a significant reduction in expected capacity for the re st of 2020 and a sharp

decline in jet fuel prices

•Total liquidity position of €10.0bn as of 30 April –cash of €6.4bn and undrawn facilities of €3.6bn, with additional facilities under negotiation

•Actions have already been taken to preserve cash

•Weekly cash operating costs reduced to €200m from €440m

•2020 €1.2bn capital spending reduction and fleet deliveries expected to be reduced by 68 between 2020 and 2022

•IAG announced on 2 April the cancellation of its proposed final dividend for 2019 of €337m

•Highly uncertain outlook

•Passenger capacity reduction in terms of ASKs of 94% in April and May with flights only undertaken for essential travel, repa triation and cargo

•Demand for cargo is strong but a small offset to the reduction in passenger activity

•Passenger capacity from June depends on the timing of the easing of lockdowns and travel restrictions by governments around t he world