IAG has halved the amount it will pay for Spanish airline Air Europa. It price was originally set at €1 billion but has been reduced to €500 million.
The payment will be also be deferred until six years after the purchase has completed.
IAG Chief Executive Luis Gallego said: “Being part of a large group is the best guarantee to overcome current market challenges which will also benefit Air Europa once the transaction is completed.
“I am pleased that we have reached agreement with Globalia to defer payment until well into the expected recovery in air travel following the end of the pandemic and when we expect to be realising significant synergies resulting from the transaction.”