IAG CEO Details A321XLR Opportunities

BRUSSELS—International Airlines Group (IAG) CEO Luis Gallego has detailed his first experience operating Airbus A321XLR long-haul routes, while eyeing more opportunity ahead.

“We wanted to know if flying in a narrowbody for this [long] of a distance would be something [passengers] don’t like,” Gallego told Aviation Week on the sidelines of the Airlines for Europe (A4E) summit on March 27. “On the contrary, the feedback is very positive. Experiences from the customers are very good. It is true that we are very happy [with the A321XLR].”

IAG member Iberia was the first airline in the world to operate transoceanic routes with the A321XLR, which started Nov. 14, 2024.

The CFM Leap 1A engine-powered aircraft has a range of up to 7,500 km (4,000 nm), featuring a two-class cabin configuration—business and economy—with a total of 182 seats.

“We operate one A321XLR at Iberia and two at Aer Lingus. This year, in principle we will have another 12 A321XLRs in our fleet. Maybe we have some delays, because Airbus is deferring some deliveries,“ Gallego says. “For the time being, no other IAG carrier is getting the A321XLR. We have 14 aircraft in total.”

Iberia is due to receive eight A321XLRs in total; Aer Lingus expects to take six.

Parent company IAG expects a total of 26 aircraft deliveries for the full year 2025, including one Boeing 787 and one Airbus A350.

When discussing the opportunities the A321XLR can deliver for IAG, Gallego mentioned the U.S. East Coast or Northeast Brazil, and thinner routes similar to those Iberia operates to Boston and soon to Washington, D.C. “The A321XLR feeds very well to develop new markets or to put more frequencies,” Gallego says.

For example, Aer Lingus plans to use the A321XLRs to serve existing transatlantic routes as well as new U.S. destinations such as Nashville and Indianapolis beginning in summer 2025.

Gallego mentioned that Iberia became a more diversified airline group between North and South America. Regarding Latin America, Gallego notes an IAG objective announced in 2023, to generate over €1.5 billion ($1.6 billion) in operating profit. “I think we are close to that, and I think we can improve that,” he says. “We continue to bet on the region. The South Atlantic is a growing market.”

Looking ahead, Gallego is expecting another difficult summer in terms of operations, especially in Europe. “Air traffic control is going to be difficult,” he says. “But we had a good year in 2024. We increased punctuality by 12%. But also customer satisfaction. But you have to continue to repeat that.”

IAG is awaiting the outcome of an investigation probing the March 21 London Heathrow shutdown, an event that halted operations for much of the day due to a fire at a nearby substation. “At Heathrow, our British Airways people did a good job. In less than 24 hours they had the aircraft flying again, they managed a very difficult situation,” Gallego says.

“We are waiting for the investigations,” he adds. “Does it make sense that a facility like Heathrow must close because of a failure in an electric power station? This is something related to the Heathrow model, and it must be changed to be more resilient.”

“It is the most expensive airport in the world, and the service you receive is not that what you pay for,” Gallego said.