Spains airline market just hit a major turning point.
Official data from Aena, Spains airport authority, shows that Vueling carried more passengers than Iberia in the first half of 2025.This marks the first time since the pandemic that Iberia, Spains traditional flag carrier, has fallen to third place.
Meanwhile, Ryanair stays firmly in first, with nearly 30 million passengers.Between January and June, Vueling flew 15.82 million passengers within Spain, up 2% from the same period last year.
Iberia moved 15.77 million, down 1%.
The difference may seem small, but it signals a deeper shift in how people travel across Spain.Vueling, a low-cost airline based in Barcelona and part of the IAG group (which also owns Iberia), benefited from recent labor deals that helped it cut costs and secure more aircraft.This allowed it to add about 1 million new seats for summer routes, growing capacity by 9% at its main base in Barcelona.
It focused on boosting short and medium-haul European routes, where demand is strongest and prices stay competitive.How Vueling Overtook Iberia and What It Says About Spains Shifting Airline Market.
(Photo Internet reproduction)Iberia, on the other hand, hit trouble.
Supply issues with engines grounded nearly half the Airbus A321neo planes used by its low-cost arm, Iberia Express.
These jets need detailed fixes and engine overhauls, and spare parts are in short supply.Spains Air Travel Hits Record HighsAt one point, Iberia Express had to reduce planned flights by 8%, affecting services across Spain and contributing to a group-wide passenger loss of about 300,000.Even though Iberias long-haul flights to Latin America held up well with a 3% increase, it wasnt enough to offset the domestic and European cuts.
Air Nostrum, another Iberia affiliate, grew by 8%, but the overall numbers still dipped.While Vueling and Iberia fight for second place, Ryanair kept growing, despite cutting flights at smaller airports due to disputes over higher airport fees.It pulled operations from cities like Jerez and Valladolid, where traffic dropped by double digits.
Still, in Madrid, Mlaga, and Alicante, Ryanair expanded and gained more than 1.5 million new passengers.Spains air travel hit an all-time high with over 180 million passengers in the first half of 2025, up 4.7% year-on-year.
But the growth isnt spread evenly.
Big cities are booming.
Smaller ones are losing service.This shift shows where the market is heading: more low-cost, short-haul flyers, fewer regional routes, and heavier reliance on major airport hubs.For travelers, it means cheaper tickets in some places, and fewer choices in others.
For the airlines, its all about cutting costs, fixing problems fast, and keeping up with where the demand really is.