IBERIA GROUP

Flying since 1927

Main business activities: Transport of passengers and freight Aircraft maintenance Handling services in airports

International Airlines Group (IAG): in January 2011 Iberia merged with British Airways to create Europe’s third-largest and the sixth-largest airline group in the world by revenues

Revenues: 14.8 billion euros Passengers: 55 million Fleet: 406 Destinations: 204

In October 2010 Iberia signed a Joint Business with American Airlines and British Airways on flights between North America and Europe

IBERIA GROUPIBERIA GROUP

LEADERSHIPLEADERSHIP Leader in Spain and in the Europe –

Latin America market It flies to more than 100

destinations all over the world Based in Madrid airport, the fourth

European airport Largest offer from Spain to Europe

and from Europe to Latin America – 20% market share (23% in Business Class)

One of Europe’s most modern fleets – 7 years average

One of the most profitable scheduled carriers A sound balance sheet and a strong

cash position Operational flexibility to adapt to

changing market conditions

KEY MAGNITUDESKEY MAGNITUDESFleet 160 aircraft

Average daily flights Over 1,000

Destinations 109 in 44 countries and other additional 187 under code sharing

Spain 32 destinations

Europe 42 destinations and 26 other cities under code sharing

Africa 11 destinations and 14 other cities under code sharing

America 23 destinations and 132 other cities under code sharing

Middle, Asia and Australia 1 destination and 15 additional cities under code sharing

IBERIA IN FIGURES 2010

Revenues from operating activities

4,770 M €

EBITDAR 493 M €

Net assets 2,132 M €

Passengers carried 24.3 Million

Freight carried per km. (RTK) 1,314 Million Tonnes

Employees (average headcount)

20,103

BUSINESS CLASSBUSINESS CLASS

Iberia’s Business class on domestic and European flights

Comfortable leather seats

On European flights, the seat in the middle stays free

NEW BUSINESS CLUBNEW BUSINESS CLUB For Iberia’s medium haul flights

Wider and roomier lounge seats, with 1.27 metres of space between rows

The extra-large, 55-cm-wide seats are of completely new design, with adjustable backs, head rests (four positions), leg rests and foot rests New in-flight entertainment system:

PSPs (LCD screen) with 10 high-definition feature films, 10 channels with the latest television series and 10 audio channels

A selection of Spain's most exquisite wines

BUSINESS PLUSBUSINESS PLUS Iberia Business class on its long haul flights

Seats that turn into a flat bed, among the best in the world A complete success since 2005, when it was launched:

More than 50 per cent increase of passengers from 2005

The latest entertainment and communications system:

satellite telephone laptop connection port 10.4-inch touch screen from which passengers can send SMS text and e-mail messages 15 audio and 26 video channels including documentaries, the latest film releases, world maps, interactive video games, flight data and live images taken from a camera situated on the tail of the aircraft

BUSINESS PLUS – A GOURMET EXPERIENCEBUSINESS PLUS – A GOURMET EXPERIENCE

Menus based on Spanish products and the Mediterranean diet

Desserts specially prepared by Paco Torreblanca

The wine experience: Wine menu with three red wines, two whites, one sparkling and one dessert wine; it is made out of a selection of 5,000 Spanish wines, changes every three months and contains the “The Sommelier's Choice” Some wines are previously tasted on long-haul flights at 30,000 feet This 12-page wine menu includes also a “do your-own-tasting” notes pages to encourage passengers to comment on the wines A pre-boarding experience in the “Wine Bar” at Iberia VIP lounges at Barajas airport

NEW BUSINESS PLUSNEW BUSINESS PLUS

Horizontal seat-beds

Each passenger now has more than 2.2 meters of personal space, with an extra 30 cm between rows

New configuration in all long haul fleet - 35 Airbus A-340’s

Iberia is working on a new design and new fittings for its long-haul Business Plus class as of 2012 – $160 million investment

CUSTOMER CARE PROGRAMCUSTOMER CARE PROGRAM

$200 million investment

Period 2009-2011

New Business Club (medium haul)

Upgraded Business Plus (long haul)

Upgraded VIP lounges Improved quantity and quality of Economy class menus on long-haul routes On-line check-in to all destinations Boarding with cell phone

IBERIA PLUSIBERIA PLUS

Europe’s first international frequent flyers program

More than four million cardholders in 66 countries

90 partners: airlines, hotel chains, car rental companies, credit cards, tour operators…

Four different levels: Classic, Silver, Gold and Platinum

Opportunity to earn and use Iberia Plus points with the other oneworld members

Iberia Plus online, information about the program and management of your own Iberia Plus account on iberia.com

IBERIA.COMIBERIA.COM

Spain’s busiest commercial web site

Iberia sold 650 million € on iberia.com in 2010

About 350,000 web visitors a day

More than 20,000 boarding cards issued every day on iberia.com

2,500,000 Iberia Plus online registrations

19,000 hotel nights booked, 12,000 car rentals and 275,000 insurance policies purchased

46 different country versions

IBERIA AND NEW TECHNOLOGIESIBERIA AND NEW TECHNOLOGIES

On-line check-in to all destinations

Boarding with cell phone

Flight information through SMS

E-ticket available on all Iberia destinations, as well as for flight tickets that combine Iberia flights with its oneworld partners and other airlines

Internet access in its main VIP lounges

Serviberia, around the clock Call Center

T4 AT MADRID AIRPORTT4 AT MADRID AIRPORT The most modern European airport terminal and the main Iberia flight’ hub. Inaugurated on February 5th, 2006

It is the fourth European airport and 10th-largest airport in the world

It is futuristic, spacious, and luminous. With 760,000 square meters, it has a main terminal and the satellite building

Designed by Rogers and Lamela, it has been awarded with the most prestigious prizes

Easier to fly: all Iberia flights leaving from the same terminal

More comfort. 64 boarding bridges

Parking lot for 8,000 vehicles

16 information counters

54 auto check-in machines

3 VIP lounges (more than 4,500 m²)

oneoneworldworld MEMBER MEMBER Ten leading airlines and its affiliates are members of oneworld: Iberia, American Airlines,

British Airways, Cathay Pacific, Finnair, Japan Airlines, LAN, Malév, Qantas, Royal Jordanian and S7.

701 destinations in 136 countries

8,244 daily flights, every five seconds an oneworld airline plane leaves or lands

550 VIP lounges all over the world

291.1 million passengers a year

Rewards and privileges of the different members’ Frequent Flyer programs are extended throughout the oneworld alliance

Special round–the–world fares

SOCIAL COMMITMENTSOCIAL COMMITMENT

Social action in cooperation with the airline’s employees: Mano a Mano:

– NGO founded by Iberia employees in 1994.– Transportation of humanitarian aid around the world (more than 2,000 tons since 1994)

and rebuilding homes destroyed by natural catastrophes (Hurricane Mitch in Honduras and the earthquake in Peru in 2007)

– Building of schools, kindergartens, orphanages, child care centers and elderly communities– Present in Argentina, Colombia, Cuba, Ecuador, Egypt, Equatorial Guinea, Guatemala,

Honduras, El Salvador, Mexico, Nicaragua, Peru, Spain, the Dominican Republic and Venezuela

APMIB association: Founded by Iberia employees with disabled children; now it is open to the rest of society Second largest job training and employment centre for the disabled

Cooperation with public and private groups, like the National Transplant Organization, the Ministry of Labor and Social Affairs and the Red Cross

CARING FOR THE ENVIRONMENTCARING FOR THE ENVIRONMENT

Iberia is one of the three airlines included in the Dow Jones Sustainability Index

CO2 emissions have been reduced by 26 per cent in the last seven years, thanks to an investment of 6 billion euros in a constant fleet renewal

Adjustment of fuel transported in every flight

Use of lighter products carried on board

New techniques in flight simulators to reduce the time pilots are flying as part of their practice; this reduces CO2 emissions by 5 per cent

Electrical ground vehicles

IBERIA MAINTENANCEIBERIA MAINTENANCE Broad experience and good reputation as an aircraft maintenance company

It’s the 9th-largest aircraft maintenance and engineering company in the world.

Second aircraft maintenance company in Spain in terms of income and staff.

First Spanish company in repairing and modifying aircraft. It maintains the aircraft, engines and components of Iberia, as well as those of more than 100 customers around the world.

2 million m2 in Madrid with 7 hangars and a number of specialized workshops, and a brand new hangar at Barcelona on a 24,000 m2 site.

In 2010, Iberia Maintenance carried out 122 inspections C and D and maintained 200 engines, as well as 53,000 aircraft components

Enjoy your flight!Enjoy your flight!