IAG is to place four Airbus A321neos with its Spanish spin-off arm Iberia Express, deploying the twinjets with the carrier from April next year.
Iberia Express already has four conventional A321s, part of a fleet which also includes 18 A320s.
It says the re-engined aircraft will be configured with 232 seats, in a mix of business- and economy-class cabins.
Iberia Express will fit the Recaro SL3510 seat in its economy section, while the business cabin will have the Collins Aerospace Pinnacle.
“They will undoubtedly help us to consolidate further the value proposition to our customers,” says chief executive Fernando Candela.
Airbus’s latest backlog figures show that Spanish flag-carrier Iberia converted a December 2015 order for three A320neos to A321neos in April this year.
This conversion gives Iberia a total order of seven A321neos as well as 13 A320neos – two of which have been delivered.