IAG Launches Standalone Media Arm to Sell Ads to 122 Million Passengers

International Airlines Group has set up a standalone media business, IAG Media, to sell advertising against its 122 million annual passengers — a capital-light play to turn its costly Starlink Wi-Fi rollout into a recurring revenue stream.

The new company is a separate U.K. entity, not an internal marketing function. It will sell campaigns across five group carriers — British Airways, Iberia, Aer Lingus, Vueling and LEVEL — which together serve 285 destinations in more than 90 countries. That scale, and the passenger data behind it, is the asset IAG wants to monetize.

What does connectivity change?

The mechanism is simple. High-speed satellite internet ends the "black box" era of the cabin, where no data flowed and every passenger saw the same commercials.

"Previously you got on board an aircraft... you were in this black box of no connectivity," said Josh Peckham, IAG Media's chief commercial officer. "Connectivity is the real driver of us being able to create that fully personalized experience."

In practice, that means ads served on Starlink login portals and inflight entertainment systems, targeted by destination, cabin class and customer profile. The targeting extends beyond the aircraft to IAG's websites, apps and even PDF boarding passes.

Half of IAG's fleet is expected to carry Starlink by the end of 2026, under a program covering more than 500 aircraft. For sellers of travel and their advertising partners, that timeline defines when inventory actually scales.

Why does IAG need the money?

Free Wi-Fi is anything but free for the airline group. Starlink is free for eligible IAG passengers, but industry estimates put installation costs at $300,000 to $500,000 per aircraft, plus recurring fees. Multiply that across a 500-plus aircraft program and IAG Media exists, in effect, to service that bill.

The business is structured in two divisions. A products and platform arm builds the ad technology itself, working through connectivity, inflight entertainment and AI. An agency arm handles sales, campaign execution and creative work.

There's also an audience extension product — selling access to IAG travelers on third-party platforms, which widens the addressable ad market beyond the cabin.

How big could it be?

Executives are not saying. IAG Media CEO Nacho Tovar and Peckham declined to give revenue forecasts or profitability targets, so any sizing currently rests on market estimates rather than company commitments.

They did define the exposure limits: advertising could range from none at all to standard pre-show ads, depending on the passenger and cabin. Both men stressed that a bad customer experience would damage both the brands and the business — the core execution risk in the model.

Is IAG late to this?

Not first, but not late either. United launched its Kinective Media venture in 2024, and Lufthansa Group has been developing its own media proposition. IAG's differentiator is the Starlink rollout and the breadth of its European and long-haul network across five brands.

The competitive pattern matters for the trade: as more carriers turn their captive audiences into ad inventory, media agencies and travel sellers will face a new class of premium, travel-contextual advertising placements to buy — and airlines will compete on fill rates and yields.

The open question is whether personalized inflight advertising can generate enough revenue to cover a $150 million-plus connectivity bill without eroding the passenger experience that underwrites IAG's premium brands.