International Consolidated Airlines S A : Sobre resultados

CONNECTING PEOPLE, BUSINESSES AND COUNTRIES

QUARTER TWO 2022 RESULTS

29 July 2022

I N T E R N A L U S E O N L Y

HIGHLIGHTS

LUIS GALLEGO, CHIEF EXECUTIVE OFFICER

2 Q 2 0 2 2 F I N A N C I A L H I G H L I G H T S

Strong recovery of underlying profitability and cash generation

• First quarter of profitability since the start of the pandemic
• Continued recovery in capacity (78% of 2019 levels in 2Q 2022 vs 65% in 1Q 2022), broadly in line with guidance
• 2Q 2022 operating profit pre-exceptional of €0.3bn (vs loss of -€1.0bn in 2Q 2021)
• • All businesses profitable at the operating level
  • Revenue recovered to 88% of 2Q 2019 and almost 5 times higher than 2Q 2021
• Liquidity of €13.5bn at end June (vs €12.4bn at end March), driven by positive EBITDA, strong forward bookings and working capital
• Net debt reduced to €11.0bn at end June vs €11.6bn at end March

3

O U T LO OK F Y 2 0 2 2

Positive outlook for the rest of the year

• Forward bookings have recovered to a rate of c.90% of 2019 levels by volume and c.95% by revenue
• • Demand is strongest on the key domestic, European, North Atlantic and South American / Caribbean routes
  • Premium leisure revenue continues to be strong and has almost fully recovered to 2019 levels
  • Business channel bookings have recovered to c.60% of 2019 in terms of volume and c.70% in terms of revenue
  • Usual limited visibility of 4Q bookings apart from key holidays with no sign of demand weakness
• FY 2022 capacity now planned to be c.78% of 2019 levels compared to c.80% before
• • Further moderated to enable operational resilience at Heathrow (mainly British Airways shorthaul)
  • 3Q capacity to be c.80% of 2019 levels and 4Q capacity to be c.85% of 2019 levels
  • North Atlantic capacity in 3Q expected to be 92% of 2019 levels compared to previous guidance of 95%
• Pre-exceptionaloperating profit to be significantly improved in 3Q compared to 2Q and to be positive for FY 2022
• Limited financial impact of BA's capacity moderation
• Net cash flow from operating activities expected to be significantly positive for FY 2022
• Net debt expected to increase in FY 2022, as per previous guidance, due to capex and seasonal working capital unwind in 2H

4

I N T E R N A L U S E O N L Y

FINANCIAL RESULTS

NICHOLAS CADBURY, CHIEF FINANCIAL OFFICER