Iberia’s fleet also will be reduced by 25 aircraft, 4,500 jobs will be cut and the route network will be optimized. Overall, 2013 capacity will be reduced 15%. The widebody fleet will be reduced from 33 aircraft now to 29 in 2015.

IAG also is planning a full takeover of Barcelona-El Prat Airport-based low-fare carrier Vueling Airlines, in which it already holds a 46% stake.

Iberia averted a series of strike during the winter holiday period after reaching agreement with unions representing ground staff and cabin crews to negotiate terms of its transformation plan and new work and pay conditions for a five-year period, through 2017.

IAG has set a Jan. 31 deadline to reach agreement on the terms of Iberia’s transformation plan with all employee groups, also with the SEPLA union representing pilots.

If no company-wide agreement is reached, IAG has said it will accelerate the downsizing of Iberia to safeguard the company’s viability.