IAG Agrees to Buy Spanish Carrier Air Europa for $1.1 Billion

British Airways parent IAG SA agreed to buy Air Europa in a move that will bolster a Spanish lineup that already includes former national carrier Iberia and discount operator Vueling.

IAG will buy the Spanish airline, which serves 69 domestic and international destinations, from tourism group Globalia for 1 billion euros ($1.1 billion), the London-based company said in a statement Monday.

The deal will turn Iberia’s Madrid hub into a true rival to London, Paris, Frankfurt and Amsterdam while reestablishing IAG as a market leader in the Europe to Latin America market, IAG Chief Executive Officer Willie Walsh said in the release.

Air Europa has sales of 2.1 billion euros in 2018 and generated an operating profit of 100 million euros, according to IAG. It carried 11.8 million passengers with a fleet of 66 aircraft.