Iberian Airlines, founded on June 28, 1927, commenced its operations on December 14, 1927. As the flag carrier airline of Spain, it is headquartered in Madrid and operates an extensive international network of services from its main hub at Madrid-Barajas Airport. In addition to passenger and freight transport, the Iberia group is engaged in various related activities including aircraft maintenance, IT systems, and in-flight catering.

The Iberia Group airlines connect to over 109 domestic and 90 international destinations through code-sharing agreements with other carriers. On April 8, 2010, it was confirmed that British Airways and Iberia had signed a merger agreement, creating one of the world's largest commercial airlines in terms of revenue. The shareholders of both airlines approved the deal on November 29, 2010. Subsequently, the International Airlines Group (IAG) was established in January 2011, and both airlines continue to operate under their respective brands.

History

Iberia Airlines was officially incorporated on June 28, 1927, with flight operations commencing on December 14, 1927. Initially sponsored by the Spanish government, its primary purpose was to provide postal transport between Barcelona and Madrid. During the dictatorship of Miguel Primo de Rivera, aviation companies in Spain became state-controlled, and in early 1928, Iberia emerged as a prominent name, although it did not have its own fleet or commercial operations at that time.

During the Spanish Civil War, the airline's director general, a Spanish Navy Captain, received orders in 1937 to organize an airline for air transport in the nationalist-held territory throughout the war. The director general traveled to Germany to secure support and materials for the airline's independent restoration.

During the conflict, Iberia primarily operated domestic flights with headquarters in Salamanca. The airline provided services to cities in Spanish North Africa, Morocco, and Spanish West Africa. It inaugurated its first regular international service as an independent civil airline on May 1, 1939, with a flight from Madrid to Lisbon.

In 1940, the Spanish government granted Iberia a monopoly on national air transport, a privilege that allowed the airline to establish itself as a significant international carrier. Following World War II, Iberia became the first airline to operate flights between Europe and South America, using Douglas DC-4 aircraft to connect Madrid and Buenos Aires. This marked the beginning of expanded air travel between Latin America and Europe via Spain.

In the early 1950s, Iberia incorporated four additional DC-4s into its fleet, which enabled the expansion of existing services and the introduction of new routes. The Pact of Madrid in 1953 eliminated visa requirements for U.S. visitors to Spain, leading to an increase in transatlantic flights between Spain and the USA the following year.

In 1959, the Spanish airline Aviaco became a part of Iberia, with Iberia acquiring two-thirds of its capital. Aviaco had been liberalized for Spanish private companies in 1946. By 1961, Iberia had nine Super Constellation aircraft in its fleet and gradually introduced short and medium-range jets, including the Douglas DC-9 and the Sud Aviation Caravelle. The Super Constellation aircraft were sold in 1966, and three years later, three DC-8-63s with increased seating capacity were added to the fleet.

Subsidiaries and Alliances

Iberia holds a 9.49% stake in the low-cost carrier Vueling, which is based near Barcelona. The parent company, IAG, owns the remaining 90.51%. Iberia maintains alliances with Avianca, British Airways, Qantas, and American Airlines, and it previously had an alliance with Grupo TACA.