IAG has also decided to make an offer for 100% of the shares in low-fare airline Vueling, in which Iberia already owns a 45% stake. Vueling is expected to take over more of the group’s Spanish short-haul operations, particularly if negotiations between Iberia and its pilots over new, lower-cost collective bargaining agreements fail. The Vueling deal is to be closed in the second quarter of 2013.

Iberia suffered a €262 million operating loss in the first nine months of the year and only broke even in the seasonally strong third quarter. Overall, IAG made a €301 million operating profit in the third quarter, reflecting the stark performance difference between Iberia and its sister company British Airways. IAG Chairman Antonio Vazquez says that after its restructuring over the past few years, BA is now “fit for growth.” The airline will take delivery of its first Airbus A380 and Boeing 787 next year.