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International Consolidated Airlines Group. S.A.

Earnings Release Sep 5, 2016

1846_rns_2016-09-05_77371229-4755-4633-a811-2e54668ed400.html

Earnings Release

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RNS Number : 9874I

International Cons Airlines Group

05 September 2016

AUGUST 2016 - IAG GROUP TRAFFIC AND CAPACITY STATISTICS

§ Group traffic in August, measured in Revenue Passenger Kilometres, increased by 7.9 per cent versus August 2015 (up 2.7 per cent on a pro-forma basis); Group capacity measured in Available Seat Kilometres rose by 9.0 per cent (up 3.9 per cent on a pro-forma basis).

§ Group premium traffic for the month of August increased by 3.4 per cent on a pro-forma basis.

5 September 2016

STRATEGIC DEVELOPMENTS

On 16 August, Japan's Ministry of Land, Infrastructure, Transport and Tourism granted an extension of anti-trust immunity to enable Iberia to join the existing joint business between Japan Airlines, British Airways and Finnair. This will allow the four airlines to cooperate commercially on flights between Europe and Japan. Iberia is expected to join from October 18, 2016 when it will start its non-stop services between Madrid and Tokyo.

On 17 August, Vueling and Qatar Airways launched a codeshare agreement which allows seamless connectivity via the airlines' common gateways of Barcelona El Prat and Rome Fiumicino. The agreement links Vueling's European network with Qatar Airways' global network of more than 150 destinations. This codeshare agreement builds upon the interline agreement signed between the two carriers in October 2014.

On 19 August, British Airways announced a codeshare agreement with Shanghai-based carrier, China Eastern Airlines. British Airways will gain access to the domestic Chinese market as it will start selling flights to Kunming, Xi'an, Nanjing, Hangzhou and Chongqing on a BA flight code. China Eastern Airlines will sell British Airways flights to Aberdeen, Belfast City, Edinburgh, Glasgow, Leeds Bradford, Manchester and Newcastle on their MU flight code.

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", "June", "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 2015; these documents are available on www.iagshares.com.

## Group Performance1 ### Month of August ### Year to Date
2016 20155 Change Pro-forma2 2016 20155 Change Pro-forma3
Passengers Carried ('000s) 10,572 9,621 9.9% 3.1% 67,893 57,088 18.9% 7.0%
Domestic4 2,208 2,188 0.9% -0.1% 15,202 14,108 7.8% 5.8%
Europe 6,122 5,296 15.6% 5.4% 37,118 28,668 29.5% 9.6%
North America 1,067 965 10.6% 0.6% 7,248 6,195 17.0% 2.1%
Latin America & Caribbean 438 425 3.1% 3,192 3,085 3.5%
Africa, Middle East & S,Asia 534 554 -3.6% 3,668 3,708 -1.1%
Asia Pacific 203 193 5.2% 1,465 1,324 10.6%
Revenue Passenger Km (m) 24,480 22,691 7.9% 2.7% 163,346 144,796 12.8% 4.9%
Domestic 1,574 1,541 2.1% 1.4% 10,523 9,457 11.3% 9.6%
Europe 7,520 6,555 14.7% 4.9% 43,767 34,209 27.9% 9.6%
North America 7,038 6,414 9.7% 1.4% 48,005 41,779 14.9% 2.7%
Latin America & Caribbean 3,660 3,523 3.9% 26,705 26,009 2.7%
Africa, Middle East & S,Asia 2,671 2,743 -2.6% 19,765 20,221 -2.3%
Asia Pacific 2,017 1,915 5.3% 14,581 13,121 11.1%
Available Seat Km (m) 28,509 26,162 9.0% 3.9% 199,741 178,170 12.1% 4.3%
Domestic 1,859 1,854 0.3% -0.5% 13,069 12,221 6.9% 5.1%
Europe 8,825 7,669 15.1% 5.6% 54,645 43,268 26.3% 8.1%
North America 8,097 7,158 13.1% 4.9% 57,749 50,038 15.4% 3.3%
Latin America & Caribbean 4,259 4,107 3.7% 31,987 31,171 2.6%
Africa, Middle East & S,Asia 3,131 3,244 -3.5% 24,715 25,811 -4.2%
Asia Pacific 2,338 2,130 9.8% 17,576 15,661 12.2%
Passenger Load Factor (%) 85.9 86.7 -0.8 pts -1.0 pts 81.8 81.3 +0.5 pts +0.5 pts
Domestic 84.7 83.1 +1.6 pts +1.6 pts 80.5 77.4 +3.1 pts +3.3 pts
Europe 85.2 85.5 -0.3 pts -0.5 pts 80.1 79.1 +1.0 pts +1.0 pts
North America 86.9 89.6 -2.7 pts -3.1 pts 83.1 83.5 -0.4 pts -0.5 pts
Latin America & Caribbean 85.9 85.8 +0.1 pts 83.5 83.4 +0.1 pts
Africa, Middle East & S,Asia 85.3 84.6 +0.7 pts 80.0 78.3 +1.7 pts
Asia Pacific 86.3 89.9 -3.6 pts 83.0 83.8 -0.8 pts
Cargo Tonne Km (m)
Cargo CTK 437 423 3.3% 1.6% 3,538 3,452 2.5% -0.2%
## Performance by Airline Month of August Year to Date
VUELING 2016 20155 Change Pro-forma 2016 20155 Change Pro-forma
Revenue Passenger Km (m) 3,540 3,418 3.6% 19,162 16,768 14.3%
Available Seat Km (m) 4,051 3,921 3.3% 23,047 20,729 11.2%
Cargo Tonne Km (m) 0 0 n/a 0 0 n/a
AER LINGUS
Revenue Passenger Km (m) 2,156 921 n/a 3.9% 12,737 921 n/a 7.8%
Available Seat Km (m) 2,437 1,033 n/a 6.1% 15,543 1,033 n/a 7.7%
Cargo Tonne Km (m) 9 6 n/a -30.8% 82 6 n/a -18.0%
IBERIA
Revenue Passenger Km (m) 5,118 4,949 3.4% 34,088 32,182 5.9%
Available Seat Km (m) 6,010 5,801 3.6% 41,575 39,680 4.8%
Cargo Tonne Km (m) 83 84 -1.2% 693 668 3.7%
BRITISH AIRWAYS
Revenue Passenger Km (m) 13,666 13,403 2.0% 97,359 94,925 2.6%
Available Seat Km (m) 16,011 15,407 3.9% 119,576 116,728 2.4%
Cargo Tonne Km (m) 345 333 3.6% 2,763 2,778 -0.5%

1 Group performance comprises Aer Lingus, British Airways, Iberia (including Iberia Express) and Vueling, Vueling traffic is currently accounted as non-premium traffic,

2 Monthly pro-forma includes Aer Lingus in the base

3 Year to Date pro-forma includes Aer Lingus in the base

4 Domestic includes routes within UK, Spain, Ireland and Italy

5 2015 figures include Aer Lingus from the acquisition date of August 18, 2015

This information is provided by RNS

The company news service from the London Stock Exchange

END

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