International Consolidated Airlines Group, S.A.
A British-Spanish airline holding group that owns and manages several major passenger and loyalty brands.
Last updated October 6, 2026
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Overview
International Airlines Group, commonly known as IAG, is a British-Spanish multinational airline holding company incorporated as International Consolidated Airlines Group S.A. It was created in January 2011 through the combination of British Airways and Iberia, the principal flag-carrier airlines of the United Kingdom and Spain. Rather than replacing the two airlines with a single operating brand, IAG established a group structure in which its airlines retain their own names, operating certificates, customer propositions and commercial identities while benefiting from shared capital allocation, procurement, technology, network planning and corporate oversight. IAG’s registered office is in Madrid, while its corporate and operational management centre is at the Waterside complex near London Heathrow. The company is listed in London and Spain, including on the London Stock Exchange and the Madrid Stock Exchange, and has been represented in both the FTSE 100 and IBEX 35 indices. British Airways shareholders received the majority interest in the new holding company at formation, while Iberia became a wholly owned subsidiary alongside British Airways. The group expanded rapidly after its creation. It acquired BMI from Lufthansa in 2012, adding Heathrow slots and integrating BMI’s aircraft and routes into British Airways. It took control of the Spanish low-cost carrier Vueling in 2013, strengthening its Barcelona base and adding a lower-cost short- and medium-haul platform. In 2015 it completed the acquisition of Aer Lingus, giving the group a strong Irish operation and additional transatlantic connectivity. IAG subsequently developed LEVEL as a low-cost long-haul brand, initially based in Barcelona, and acquired selected assets and traffic rights from the failed Austrian leisure airline Niki. The group’s main airline brands are British Airways, Iberia, Aer Lingus, Vueling and LEVEL. Its business also includes IAG Cargo, which coordinates cargo activities associated with the group’s airlines, and IAG Loyalty, whose Avios currency is used across multiple IAG brands and partner airlines. Avios connects airline loyalty, credit-card, hotel and retail partnerships and has become one of the group’s important non-ticket customer platforms. IAG competes through a portfolio model covering full-service network aviation, low-cost short-haul flying and lower-cost long-haul services. British Airways provides a global network centred on the United Kingdom, Iberia links Spain and Europe with Latin America and other long-haul markets, Aer Lingus focuses on Ireland and North American connectivity, Vueling serves price-sensitive European routes, and LEVEL provides selected low-cost long-haul services. The group also participates in the oneworld alliance and maintains commercial relationships with other airlines, including Qatar Airways. The company has faced recurring integration, labour, regulatory and financial challenges. Iberia’s losses following the merger placed pressure on the group’s balance sheet and led to restructuring and cost-reduction measures. IAG later suffered a severe pandemic shock, with travel restrictions causing a multibillion-euro loss in 2020. Its proposed acquisition of Air Europa was investigated by the European Commission and ultimately abandoned in 2024 after competition concerns and negotiations over remedies. IAG remains an active airline group, focused on fleet renewal, long-haul growth, digital loyalty, operational recovery and the management of distinct airline brands under one corporate structure.
History
International Airlines Group was established in 2011 when British Airways and Iberia combined their corporate structures. The transaction created a cross-border airline holding company intended to unite two established national airline businesses while preserving their separate brands and operating identities. British Airways brought a major United Kingdom hub operation and a substantial long-haul network, while Iberia contributed a strong Spanish base and extensive links between Europe and Latin America. The group model was designed to provide scale in purchasing, fleet planning, network development, commercial partnerships, and corporate administration. At the same time, passengers continued to book flights under the British Airways and Iberia names rather than under a single IAG airline identity. This distinction became central to the group’s business model: IAG functions primarily as an owner and strategic coordinator, while its airlines compete in different customer segments and geographic markets. Following its formation, IAG expanded its portfolio beyond the original British Airways and Iberia combination. Vueling became an important short-haul and value-oriented component of the group, strengthening its position in Spain and across European leisure and point-to-point markets. Aer Lingus added an Irish platform and transatlantic connectivity. IAG also developed or operated additional branded propositions, including LEVEL, which was created to address long-haul low-cost and leisure demand from selected European bases. The portfolio allows IAG to combine full-service network airlines with lower-cost and more focused operators. British Airways and Iberia provide major hub connectivity and premium as well as long-haul services; Vueling supports dense short-haul flying and leisure demand; Aer Lingus offers a distinct Irish and transatlantic proposition; and LEVEL provides a separate low-cost long-haul brand concept. Across the group, airline loyalty, digital distribution, partnerships, cargo, and ancillary revenues complement passenger ticket sales. IAG’s development has taken place within an aviation industry marked by intense competition, economic cycles, regulatory oversight, airport-capacity limitations, labor negotiations, fuel-price volatility, and changing environmental expectations. The group’s structure is intended to provide resilience through geographic and brand diversification, but its performance remains closely tied to passenger demand, operating costs, fleet availability, and the health of international travel markets. IAG remains an active publicly listed airline holding company whose consumer presence is expressed mainly through its constituent airlines rather than through a unified retail brand.
- 2011
Formation through the British Airways–Iberia merger
[1]British Airways and Iberia combined to create International Consolidated Airlines Group, establishing the corporate structure that became International Airlines Group.
Products and positioning
Major European multinational airline holding group with a multi-brand portfolio spanning full-service, low-cost, leisure, regional, and long-haul aviation markets.
Full-service network airline
British Airways
British Airways is IAG’s principal United Kingdom airline and a major full-service network carrier. It provides short-haul, medium-haul, and long-haul passenger services from the United Kingdom, with an emphasis on hub connectivity, international routes, premium cabins, corporate travel, cargo capacity, and links with partner airlines.
Full-service network airline
Iberia
Iberia is IAG’s principal Spanish network airline. Its services combine domestic and European connectivity with long-haul routes, particularly between Spain, Latin America, and other international markets. Iberia also contributes a major Spanish hub operation and provides full-service and premium travel propositions within the group.
Low-cost and short-haul airline
Vueling
Vueling is IAG’s low-cost and short-haul airline brand, with a strong base in Spain and a broad European network. It focuses on point-to-point and leisure-oriented travel while also feeding traffic into wider group and partner networks. Its operating model emphasizes network density, competitive fares, and ancillary services.
Network and transatlantic airline
Aer Lingus
Aer Lingus is IAG’s Irish airline brand. It operates short-haul European services and transatlantic routes, giving the group an additional geographic base and a distinct Irish market presence. Its network supports connections between Ireland, North America, the United Kingdom, and continental Europe.
Long-haul low-cost airline brand
LEVEL
LEVEL is an IAG long-haul low-cost brand concept created to serve price-sensitive and leisure-oriented international travelers. It operates separately from the group’s traditional full-service brands and is intended to provide a more focused proposition on selected long-haul routes.
Recent events
Travelport and IAG announce NDC distribution agreement[2]
Reported:
Travelport and International Airlines Group announced a distribution agreement to make NDC content from Aer Lingus, British Airways, Iberia and Vueling available to Travelport-connected travel agencies worldwide. The parties said they were progressing on the technical solution and would continue adding features before the content rollout.
IAG launches €1 billion bond issue[3]
Reported:
International Airlines Group launched a €1 billion bond issue to support company finances while it awaited the reopening of travel. The proceeds were earmarked for general corporate purposes, including strengthening its balance sheet.
British Airways secures £2 billion loan commitments[4]
Reported:
British Airways received commitments for a five-year £2 billion loan facility, partially guaranteed by UK Export Finance. The facility was intended to enhance liquidity and provide flexibility amid a partial recovery in air-travel demand.
IAG announces British Airways CEO departure and successor[5]
Reported:
IAG announced that Alex Cruz had quit as British Airways chief executive and that Aer Lingus CEO Sean Doyle was set to replace him.
Sources5 sources
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