Aer Lingus owner IAG pulls out of deal to buy Air Europa

IAG agreed to pay €500m to buy the airline in January after the Covid-19 pandemic cut the original price in half and IAG struck a deal to defer payments for six years

As well as Aer Lingus, IAG also owns Spanish airlines Iberia and Vueling. Picture: Sam Boal / RollingNews.ie

Aer Lingus and British Airways owner IAG is set to cancel its acquisition of rival Air Europa from privately held Spanish company Globalia, the group.

"International Airlines Group and Globalia confirm today they are in an advanced phase of negotiations to cancel the agreement," IAG finance chief Stephen Gunning said in a statement.