International Consolidated Airlines Group. S.A.

Investor Presentation • Jul 30, 2021

IAG RESULTS

QUARTER TWO 2021 30 July 2021

HIGHLIGHTS

LUIS GALLEGO, CHIEF EXECUTIVE OFFICER

2Q 2021 HIGHLIGHTS AND OUTLOOK 2Q 2021 HIGHLIGHTS AND OUTLOOK

Taking action to manage the recovery from the pandemic

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2 Q 2 0 2 1 H I G H L I G H T S A N D O U T LO O K

Cash performance better than previous quarters

Significant improvement in operating cash flow in 2Q vs previous quarters

2 Q 2 0 2 1 H I G H L I G H T S A N D O U T LO O K

Significant actions taken by all operating companies to address their individual challenges

2 Q 2 0 2 1 H I G H L I G H T S A N D O U T LO O K

Confident of a meaningful recovery in demand from 3Q

• Raising capacity in 3Q to c.45% of 2019 levels
• Operationally ready to fly up to c.75% in 4Q to take advantage of a later summer leisure season
• Widespread evidence of pent-up demand: US point of sale; longhaul VFR and leisure; shorthaul leisure; and Spain domestic business travel

Air Europa transaction under phase II review by European Commission

FINANCIAL RESULTS

STEVE GUNNING, CHIEF FINANCIAL OFFICER

2 Q 2 0 2 1 F I N A N C I A L H I G H L I G H T S Liquidity remains strong despite loss

2 Q 2 0 2 1 O P E R AT I N G R E S U LT

Continued losses due to COVID-19 travel restrictions

Exceptional items	78	-812	-	nm
Pre exceptional operating result	-1,045	-1,370	951	-209.9%
Total expenditure on operations	2,289	2,111	5,780	-60.4%
Depreciation, amortisation and impairment	450	544	520	-13.5%
Supplier costs	824	802	2,393	-65.6%
Fuel, oil costs and emissions charges	349	104	1,570	-77.8%
Employee costs	666	661	1,297	-48.7%
Total revenue	1,244	741	6,731	-81.5%
Other revenue	143	174	487	-70.6%
Cargo revenue	419	369	281	49.1%
Passenger revenue	682	198	5,963	-88.6%
	2Q 2021	2Q 2020	2Q 2019	v2y

ASKs	19,245	4,103	88,008	-78.1%

2 Q 2 0 2 1 F I N A N C I A L P E R F O R M A N C E AT A I R L I N E L E V E L

Spanish carrier outperformance due to fewer COVID-19 restrictions

	2Q 2021 (€m)	v2y	2Q 2021 (£m)	v2y	2Q 2021 (€m)	v2y	2Q 2021 (€m)	v2y
Passenger revenue	22	-96.3%	203	-93.5%	274	-73.2%	146	-78.6%
Cargo revenue	16	23.1%	279	55.0%	95	30.1%	-	-
Other revenue	0	-100.0%	24	-86.0%	132	-61.7%	3	-40.0%
Total revenue	38	-93.7%	506	-85.4%	501	-65.2%	149	-78.3%
Total expenditure on operations	134	-72.8%	1,128	-61.6%	645	-50.6%	248	-59.7%
Pre exceptional operating result	-96	-208	-622	-1,148	-144	-277	-99	-169
Pre exceptional operating margin	-252.6%	-271.1pts	-122.9%	-138.1pts	-28.7%	-38.0pts	-66.4%	-76.8pts
ASK (m)	919	-89.1%	6,800	-85.9%	8,003	-56.5%	3,427	-67.8%
RPK (m)	190	-97.3%	2,743	-93.3%	4,547	-71.7%	2,324	-74.5%
Load factor (%)	20.7%	-62.6pts	40.3%	-44.0pts	56.8%	-30.6pts	67.8%	-17.8pts
Sector length (km)	2,063	1.5%	3,422	8.8%	2,651	-5.9%	962	0.6%

1 H 2 0 2 1 C A S H B R I D G E Strong cash position throughout the period

L I Q U I D I T Y

Liquidity position remains higher than before the COVID-19 crisis

D E B T P O S I T I O N €500m increase in net debt in 2Q

€m	30 Jun 2021	31 Mar 2021	31 Dec 2020	31 Dec 2019
Gross debt	19,771	19,539	15,679	14,254
Bank and other loans	7,440	6,948	3,369	1,954
Asset finance and lease liabilities	12,331	12,591	12,310	12,300
Cash, cash equivalents and interest-bearing deposits	7,664	7,975	5,917	6,683
Net debt	12,107*	11,564*	9,762	7,571

Note*: Net debt increase at 30 Jun compared to 31 Mar 2021 includes c.€0.1bn of non-cash movements. Net debt increase at 31 Mar 2021 compared to 31 Dec 2020 includes €0.6bn of non-cash movements (mainly exchange rate movements).

Minimal debt repayment until convertible bond due in November 2022

Note: Excludes finance and operating leases. Excludes Air Europa.

W E E K LY C A S H O P E R AT I N G C O S T E V O L U T I O N

Weekly cash operating costs expected to rise as capacity resumes

Note: excludes revenue, working capital, tax, debt amortisation and pension deficit payments; includes operating and interest cash expenses and income; includes finance lease repayments and operating lease rentals; includes fuel and FX 'over-hedge' losses.

CEO UPDATE & OUTLOOK

LUIS GALLEGO, CHIEF EXECUTIVE OFFICER

• Manchester base to open September 2021: UK AOC approved, largely variable cost base, code-share with British Airways
• Progressing integration into Atlantic Joint Business
• Replacement of Stobart Air on regional routes initially by Aer Lingus mainline and BA CityFlyer in 2021 and subsequently by Emerald Airlines
• Closure of Shannon cabin crew base announced
• Reduction and review of handling arrangements at Shannon and Cork
• Negotiating with other labour groups (agreement with pilots reached)

• New cabin hand-baggage policy to increase ancillary revenue and support punctuality

• Profitable and cash generative throughout the pandemic (customers still spending on non-airline partners)

• Customer spend on UK co-branded credit card higher in June than 2019 due to more customers and growth in goods and services spend
• Successful launch with new partners Barclays Premier, Sainsbury's/Nectar and Santander
• Significant customer enhancements e.g. doubling number of Guaranteed Avios Reward Seats on BA and Iberia flights
• New Avios collection partnerships to be announced in 2H21 in UK and Spain – e.g. BPme Rewards in UK

D I G I TA L I N I T I AT I V E S

Accelerating digital initiatives to facilitate travel during and post COVID-19

Widespread evidence of pent-up demand across regions

Note: 2 May 2021 was the date used for the 1Q 2021 results presentation on the 7 May 2021

U S P O I N T O F S A L E W E E K LY N E W PA S S E N G E R B O O K I N G I N TA K E S

Strong point of sale USA demand following EU restriction removal

B R I T I S H A I R WAY S I N TA K E S

Amber list country bookings have grown since UK policy change announced

B R I T I S H A I R WAY S S U M M E R 2 0 2 1 S C H E D U L E

BA shorthaul peak summer holiday schedule larger than in summer 2019

Reflects 29 "peak summer holiday" leisure routes where the reason for travel > 70% holiday (Source: CAA survey) as of 19 July

O P E R AT I O N A L R E A D I N E S S

Ready to operate up to a maximum of c.75% capacity by 4Q 2021

Aircraft readiness • Longhaul: • 5% fewer aircraft than 2019 (and smaller A321LR) • 82% operationally ready • Shorthaul: • 15% fewer aircraft than 2019 • 83% operationally ready	Crew readiness • Pilots: Due to low level of flying 82% ready to fly. Pace of ramp up to maximum operations constrained due to training requirement, particularly on widebody. • Cabin crew: Enough to fly current capacity plan including peak maximum	4Q max capacity (as % of 2019) 69%
• Longhaul: • 18% fewer aircraft than 2019 (and smaller) • 92% of fleet operationally ready • Shorthaul: • Similar number of aircraft to 2019 • 80% of fleet operationally ready	• Pilots: All ready to fly, but c.15% fewer than 2019 • Cabin crew: Ready to fly up to maximum capacity, but c.30% fewer than 2019	73%
• Longhaul: • 18% fewer aircraft than 2019 • 100% operationally ready • Shorthaul: • 15% fewer aircraft than 2019 • 100% operationally ready	• Pilots: All ready to fly • Cabin crew: All ready to fly	86%
• Shorthaul: • 100% operationally ready* • 12% fewer aircraft than 2019	• Pilots: All ready to fly • Cabin crew: Enough to fly current capacity plan and building a pool of cabin crew large enough to fly 100% of 2019	100%

*Permanently grounded aircraft excluded. Maximum capacity for Vueling requires re-activation of previously grounded aircraft

S U S TA I N A B I L I T Y

Continuing to lead the airline industry on tackling climate change

IAG upgraded by the CDP (Carbon Disclosure Project) to A- in recognition of our carbon management strategy. IAG is the only European airline group that has been awarded this top grade

British Airways launch of two sustainabilitylinked financings:

• UK Export Finance loan
• First ever sustainability-linked EETC (coupon steps up by 25bps after 5 years if carbon efficiency target is not reached by the end of 2025)

Iberia and Repsol agreement that includes development of Sustainable Aviation Fuels (SAF), production of electricity and renewable hydrogen to decarbonise Iberia's ground vehicles and development of more sustainable buildings and facilities using artificial intelligence

British Airways and partners shortlisted for UK government funding for four ground-breaking projects to decarbonise aviation:

• Velocys Altalto project to build a commercial waste-to-SAF plant
• LanzaJet and Nova Pangaea collaboration, to convert waste wood into alcohol and then into SAF
• LanzaTech project to capture carbon dioxide from the atmosphere and convert it into SAF
• LanzaJet project to produce SAF from waste and industrial gases

O U T L O O K

Confident of a meaningful recovery in demand

In the short term our focus is on ensuring operational readiness for a recovery in demand

Some positive government actions to reduce travel restrictions

More government action required to enable travel

• Group capacity expected to be c.45% of 2019 levels in 3Q but significantly higher than c.20% in 1H 2021
• Iberia and Vueling capacity in 3Q above Group average at c.70%

• Operationally ready to fly up to c.75% of 2019 capacity in 4Q to take advantage of a later summer leisure season

• UK (17 May) and Ireland (19 July) have lifted bans on non-essential travel

• EU is open for fully vaccinated US travellers
• Increasingly fully vaccinated travellers allowed without the need to quarantine/test

• Good progress with health digital passes (e.g. UK NHS app and EU Digital COVID Certificate) and integrated with passenger locator forms

• Travel corridors where vaccination roll-out has been successful (e.g. US/UK and US/EU)

• Harmonisation of restrictions across Europe (EU, UK) and consistent criteria to determine Green/Amber/Red countries
• Further extension of furlough programmes

C O N C L U S I O N S

Set to emerge from COVID-19 in a stronger competitive position

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Significant improvement Liquidity is strong in operating cash flow in 2Q vs previous quarters

IAG and its airlines have devoted significant resources to ensure that when demand returns we are able to capitalise

We have accelerated the digitisation of our business

There is widespread pent-up demand when restrictions are lifted

We are preparing the business so we can emerge stronger and more competitive in a structurally changed industry

We continue leading the industry's efforts to make flying sustainable

APPENDICES

G O V E R N M E N T A C T I O N S R E Q U I R E D T O O P E N T R AV E L

Some progress on governments actions but more needed

Enabler	Required actions	Progress
Legal barriers	• Harmonised EU roadmap to air travel re-start • Ending of penalties in UK and Ireland for non-essential travel • Repeal of US entry ban for UK, Schengen and Ireland citizens	• Coordinated approach to restriction of free movement within the EU/external arrivals required • UK and Ireland travel ban lifted • All UK/EU entry to US still banned
Traffic Light systems	• Harmonised across Europe (EU, UK) • Consistent criteria to determine Green, Amber, Red countries • Travel corridors between Green countries/regions (e.g. UK/US) • Islands and regions to be treated on their own merits not the national classification • Official travel advice to align with traffic light tiers	• Not harmonised; individual approaches still taken • Despite EU published criteria, individual countries still applying their own rules; no clarity on UK criteria • No mutual agreements in place with the UK • Yes for UK (e.g. Balearic Islands 24 June to 19 July) • Not fully implemented (e.g. France and Italy)
Testing	• Testing to replace quarantines • More affordable, simpler (lateral flow replacing PCR), faster and proportionate • Vaccinated travellers to travel without quarantine • Unvaccinated travellers to travel with testing	• Some quarantines still in place, as well as testing requirements on top, although increasingly vaccinated passengers exempt • Lateral flow becoming industry standards vs PCR, but IAG home countries still require PCR • Increasingly countries are allowing vaccinated passengers to be exempt from quarantine (no quarantine in Spain; vaccinated passengers no quarantine in Ireland or in UK if arriving from lower risk, "amber"/green" countries) • Quarantines remain for many countries
Airports and Borders	• Re-opening of e-gates • Improved border control resourcing and processes to handle volume recovery	• Reopened and integrated with the passenger locator form in the UK and in Spain • UK Border Force delays reduced due sampling of health credentials instead of 100% compliance checks, resources vulnerable to "pingdemic"
Digital passes	• Vaccination and testing certificates captured in industry apps • Passenger locator apps integrated with border control and industry apps • Global agreement on a digital standard for testing and vaccination documentation	• Good progress with industry apps and airline systems on testing certificates, but issues with standardisation/authenticity of original certificate remain. EU Digital COVID Certificate agreed in June but multiple approaches to its implementation • Yes in some countries (e.g. UK, Spain) • No progress globally, UK-EU app standards based on same architecture making implementation simple when policy is agreed

R E C O N C I L I AT I O N B E T W E E N P R E E X C E P T I O N A L O P E R AT I N G R E S U LT A N D P O S T E X C E P T I O N A L R E S U LT A F T E R TA X Net loss of c.€1.0bn in the second quarter

€m	2Q 2021	2Q 2020
Operating result (pre exceptional)	-1,045	-1,370
Exceptional items	78	-812
Operating result (post exceptional)	-967	-2,182
Net finance costs	-185	-179
Net financing (charge)/credit relating to pensions	2	5
Net currency retranslation (charges)/credits	0	20
Other non-operating credits/ (charges)	30	10
Result before tax (post exceptional)	-1,120	-2,326
Tax	139	201
Result after tax (post exceptional)	-981	-2,125

			Quarter
Group performance	2Q 2021	2Q 2020	vLY	2Q 2019	vLY
Passengers carried ('000s)	5,468	508	+976.4%	31,504	-82.6%
Domestic (UK & Spain)	2,934	254	+1055.1%	7,454	-60.6%
Europe	1,779	147	+1110.2%	16,906	-89.5%
North America	169	51	+231.4%	3,487	-95.2%
Latin America & Caribbean	357	17	+2000.0%	1,539	-76.8%
Africa & Middle East	201	7	+2771.4%	1,480	-86.4%
Asia & Pacific	28	32	-12.5%	638	-95.6%
Revenue passenger km (m)	9,969	1,155	+763.1%	74,806	-86.7%
Domestic (UK & Spain)	2,394	225	+964.0%	5,371	-55.4%
Europe	2,253	143	+1475.5%	19,917	-88.7%
North America	1,085	322	+237.0%	22,948	-95.3%
Latin America & Caribbean	2,973	160	+1758.1%	12,738	-76.7%
Africa & Middle East	991	47	+2008.5%	7,721	-87.2%
Asia & Pacific	273	258	+5.8%	6,111	-95.5%
Available seat km (m)	19,245	4,103	+369.0%	88,008	-78.1%
Domestic (UK & Spain)	3,496	487	+617.9%	6,106	-42.7%
Europe	3,847	372	+934.1%	24,082	-84.0%
North America	4,037	2,210	+82.7%	26,599	-84.8%
Latin America & Caribbean	5,341	285	+1774.0%	14,778	-63.9%
Africa & Middle East	1,841	62	+2869.4%	9,295	-80.2%
Asia & Pacific	683	687	-0.6%	7,148	-90.4%
Passenger load factor (%)	51.8	28.2	+23.6 pts	85.0	-33.2 pts
Domestic (UK & Spain)	68.5	46.2	+22.3 pts	88.0	-19.5 pts
Europe	58.6	38.4	+20.2 pts	82.7	-24.1 pts
North America	26.9	14.6	+12.3 pts	86.3	-59.4 pts
Latin America & Caribbean	55.7	56.1	-0.6 pts	86.2	-30.6 pts
Africa & Middle East	53.8	75.8	-22.0 pts	83.1	-29.3 pts
Asia & Pacific	40.0	37.6	+2.4 pts	85.5	-45.5 pts
Cargo tonne km (m)	999	578	+72.8%	1,409	-29.1%

G R O U P P E R F O R M A N C E 2Q 2021 traffic and capacity statistics

A I R L I N E P E R F O R M A N C E 2Q 2021 traffic and capacity statistics

2Q 2021 2Q 2020 vLY 2Q 2019 vLY Passengers carried ('000s) 143 60 +138.3% 3,255 -95.6% Revenue passenger km (m) 190 77 +146.8% 6,996 -97.3% Available seat km (m) 919 836 +9.9% 8,394 -89.1% Passenger load factor (%) 20.7 9.2 +11.5 pts 83.3 -62.6 pts Cargo tonne km (m) 23 52 -55.8% 43 -46.5% Passengers carried ('000s) 967 180 +437.2% 12,643 -92.4% Revenue passenger km (m) 2,743 665 +312.5% 40,768 -93.3% Available seat km (m) 6,800 2,407 +182.5% 48,337 -85.9% Passenger load factor (%) 40.3 27.6 +12.7 pts 84.3 -44.0 pts Cargo tonne km (m) 763 492 +55.1% 1,083 -29.5% Passengers carried ('000s) 1,862 106 +1,656.6% 5,697 -67.3% Revenue passenger km (m) 4,547 268 +1,596.6% 16,057 -71.7% Available seat km (m) 8,003 544 +1,371.1% 18,379 -56.5% Passenger load factor (%) 56.8 49.3 +7.5 pts 87.4 -30.6 pts Cargo tonne km (m) 211 34 +520.6% 283 -25.4% Passengers carried ('000s) 15 1 +1,400.0% 484 -96.9% Revenue passenger km (m) 165 5 +3,200.0% 1,872 -91.2% Available seat km (m) 96 7 +1,271.4% 2,257 -95.7% Passenger load factor (%) 171.9 71.4 +100.5 pts 82.9 +90.0 pts Cargo tonne km (m) 2 0 0 Passengers carried ('000s) 2,481 161 +1,441.0% 9,425 -73.7% Revenue passenger km (m) 2,324 140 +1,560.0% 9,113 -74.5% Available seat km (m) 3,427 309 +1,009.1% 10,641 -67.8% Passenger load factor (%) 67.8 45.3 +22.5 pts 85.6 -17.8 pts Cargo tonne km (m) n/a n/a n/a n/a n/a	Performance by airline	Quarter

DISCLAIMER

Forward-looking statements:

Certain statements included in this announcement are forward-looking. These statements can be identified by the fact that they do not relate only to historical or current facts. By their nature, they involve risk and uncertainties because they relate to events and depend on circumstances that will occur in the future. Actual results could differ materially from those expressed or implied by such forward-looking statements.

Forward-looking statements often use words such as "expects", "may", "will", "could", "should", "intends", "plans", "predicts", "envisages" or "anticipates" or other words of similar meaning. They include, without limitation, any and all projections relating to the 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 expenditure and divestments relating to the Group and discussions of the Group's business plan. All forward-looking statements in this announcement are based upon information known to the Group on the date of this announcement and speak as of the date of this announcement. Other than in accordance with its legal or regulatory obligations, the Group does not undertake to update or revise any forward-looking statement to reflect any changes in events, conditions or circumstances on which any such statement is based.

Actual results may differ from those expressed or implied in the forward-looking statements in this announcement as a result of any number of known and unknown risks, uncertainties and other factors, including, but not limited to, the effects of the COVID-19 pandemic and uncertainties about its impact and duration, many of which are difficult to predict and are generally beyond the control of the Group, and it is not reasonably possible to itemise each item. Accordingly, readers of this announcement are cautioned against relying on forward-looking statements. Further information on the primary risks of the business and the Group's risk management process is set out in the Risk management and principal risk factors section in the Annual Report and Accounts 2020; these documents are available on www.iairgroup.com. All forward-looking statements made on or after the date of this announcement and attributable to IAG are expressly qualified in their entirety by the primary risks set out in that section. Many of these risks are, and will be, exacerbated by the COVID-19 pandemic and any further disruption to the global airline industry and economic environment as a result.