AUGUST 2011 - GROUP TRAFFIC AND CAPACITY STATISTICS

§ In August 2011, Group traffic measured in Revenue Passenger Kilometres rose by 2.2 per cent versus August 2010, capacity measured in Available Seat Kilometres was up 2.1 per cent.

§ Group premium traffic for the month of August grew by 8.7 per cent compared to the previous year, with 1.4 per cent growth in non-premium traffic.

§ At this stage underlying trends are in line with our expectations, with continued growth in premium versus non-premium volumes.

STRATEGIC DEVELOPMENTS
IAG began the process of launching a new shared currency called Avios for all three travel reward programmes in the group – British Airways Executive Club, Iberia Plus and Airmiles UK. This is the first step towards creating a world leading, scalable reward platform that will increase incremental profits, drive more loyalty among existing members, attract more members from existing databases and new markets and improve the value of redemption.

Iberia increased frequencies to the city of Malabo, Equatorial Guinea, Iberia now operates six times per week between the two capital cities.

British Airways and Qantas have announced changes to their joint services agreement between the UK and Australia from summer 2012 to strengthen their Singapore hub and maximise the airlines’ respective network strengths. Additionally as part of the changes British Airways will also be raising the frequency of its flights between London and Hong Kong from 28 to 34 a week.

British Airways has launched its biggest pilot recruitment drive for more than 800 new pilots by 2016. The airline will also continue to recruit qualified pilots from other airlines and run a joint initiative with the UK Armed Forces to provide military pilots with a planned career path into commercial aviation.

British Airways World Cargo organised a relief aircraft of emergency supplies and equipment to victims of the food crisis in East Africa. A Boeing 747 freighter carrying just under 110 tonnes of cargo, flew to Ethiopia in early August carrying aid from Oxfam and UNICEF.

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.