IAG chief Luis Gallego warned that current EU competition rules make any potential bid for easyJet extremely challenging. The British Airways parent company's leader called for a fundamental overhaul of how the bloc evaluates airline acquisitions, suggesting existing frameworks create unnecessary barriers to consolidation in the sector.

Gallego's comments come amid ongoing speculation about IAG's strategic interest in easyJet, which operates as a major low-cost carrier across European routes. The regulatory environment has grown increasingly complex since the pandemic, with competition authorities scrutinizing deals that could reduce market competition or create dominant players in key routes.

Any acquisition of easyJet would face intense regulatory scrutiny given both airlines' significant presence in the UK and European markets. The deal would likely require substantial concessions to address competition concerns, potentially including route divestitures or slot releases at congested airports.

Gallego's intervention signals growing frustration among airline executives about what they see as overzealous merger control, particularly as the industry seeks scale advantages to weather volatile fuel costs and economic uncertainty.