IAG cuts Iberia and Vueling short‑haul European capacity by 2.8%

International Airlines Group (IAG) announced a 2.8% reduction in short‑haul European capacity for its Iberia and Vueling airlines in the first half of 2026. The cut affects about 30% of the group’s seats on these routes and is driven by persistent overcapacity on leisure flights to Spain and higher fuel prices that squeeze margins. Iberia also reduced capacity for maintenance work, while Vueling trimmed several routes. At the same time, IAG shifted capacity to long‑haul services, increasing seats to Latin America by 3.5% and to North America by 1.5%.

The airline group cites intense competition from low‑cost carriers such as easyJet and Ryanair, which have expanded capacity on the same markets, limiting IAG’s ability to pass fuel cost increases onto passengers. IAG expects continued competitive pressure through the summer and will reassess winter capacity to protect profitability.