In a standout moment in New York, Luis Gallego, the chief executive of IAG, was named Entrepreneur of the Year by the Spain-United States Chamber of Commerce. The award, presented on a Monday evening, underscored IAG’s global influence in the aviation sector and its expanded portfolio, which includes Iberia and Vueling. Beyond recognition, the accolade highlighted Gallego’s commitment to sustainability, a priority he frames as essential for the industry and its countless travelers. He acknowledged that decarbonizing air travel entails costs, yet he emphasized that IAG’s approach aims to minimize the impact on ticket prices and preserve affordability for passengers.
Gallego defends a bold transformation plan and the efficiency measures already put in place at IAG. He notes that the group aims to meet a 10% share of sustainable aviation fuel (SAF) by 2030, a global benchmark the company treats as a primary objective. IAG also targets net-zero emissions by 2050 and has earned a top score from the Carbon Disclosure Project for its environmental transparency and performance.
bet on SAF
The discussion around SAF continues to gain momentum as aviation explores alternatives to traditional kerosene. Gallego cautions that hydrogen-powered aircraft may not be a plug-and-play solution for all flight types, particularly shorter routes, and he estimates a multidecade horizon for replacing an entire fleet. Nevertheless, he remains optimistic about SAF as a viable near-term option, especially in regional aviation or technologies tied to carbon capture. He stresses that reducing CO2 emissions hinges on scalable SAF adoption alongside other innovations.
SAF is currently more expensive than conventional fuel due to market scarcity, a reality Gallego acknowledges. He also applauds policy incentives in the United States that advance SAF production and hints that IAG plans to source more SAF as it expands its footprint next year and beyond.
Looking ahead, Gallego wishes for SAF adoption to gain traction in Europe as well. He envisions a future with a more direct European airspace, a concept known as the single European sky. This transformation could shorten flight routes, reduce fuel burn, and cut emissions by about 10 percent according to IAG’s analyses. A more efficient airspace system would benefit travelers by shortening journeys and lowering environmental impact.
“Solutions, not restrictions”
IAG’s threefold sustainability strategy is also supported by Fernando Candela, president and CEO of Iberia. Candela cautions against measures that merely limit flying and stresses practical steps to decarbonize. He points to sustainable fuels as a near-term option, the potential for a European sky that streamlines routes, and stronger intermodal connectivity as the keys to progress. The emphasis remains on technical solutions that address specific challenges while maintaining passenger choice.
Candela did not detail particular routes, but he noted IAG operates several short-haul connections—within roughly two and a half hours of Madrid—linking cities such as Barcelona, Valencia, Alicante, Malaga, and Seville. These routes primarily serve passengers who connect to longer journeys, underscoring the network’s role in international travel. The overarching message is clear: optimizing these connections and improving energy efficiency are essential to advancing emissions goals while preserving the value and convenience travelers expect.