IAG's Iberia CEO steps down amid job cuts

International Airlines Group (IAG) announced Wednesday the resignation of Rafael Sanchez-Lozano as Chief Executive Officer (CEO) of the company's Spanish subsidiary Iberia.

He will be replaced by Luis Gallego, who is currently CEO of Iberia's arm Iberia Express.

It comes amid a cost-cutting strategy at the unprofitable carrier which includes eliminating 3,140 jobs.

IAG said Sanchez-Lozano's decision to step down was "mutual".

"I would like to thank Rafael for his hard work and commitment to Iberia," said CEO of IAG, Willie Walsh.

"He has led the airline through a very difficult period in the midst of a deep recession and has completed the first important step towards returning the airline to profitability."

Walsh said Gallego brings an extensive experience across a range of international airlines and has been instrumental in bringing profitability to Iberia Express.

"It is profitable, punctual and popular with customers and has created 500 much needed jobs in Spain," he noted.

"Iberia is entering its next transition phase and I have every confidence that Luis can return Iberia to profitable growth."

While Iberia Express is running at a profit, parent company Iberia posted a €351m annual loss.

RD