BBC News - Iberia chief executive Rafael Sanchez-Lozano resigns 27 March 2013 Last updated at 15:05 The chief executive of Spanish airline Iberia, Rafael Sanchez-Lozano, has resigned, the carrier's parent company International Airlines Group (IAG) has said. IAG, which also owns British Airways, said Mr Sanchez-Lozano had left the top job at Iberia by "mutual agreement." Iberia has recently been hit by a series of strikes in a dispute over cost-cutting measures at the airline. IAG was formed in 2011 by the merger of Iberia and British Airways. It has since been trying to reduce losses at Iberia, sparking industrial action over job and salary cuts. IAG said that Mr Sanchez-Lozano was leaving with immediate effect. He is being replaced by Luis Gallego, boss of Iberia's budget arm Iberia Express, which IAG is trying to expand. "[Mr Sanchez-Lozano] 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," said IAG chief executive Willie Walsh. Last month, IAG reported a net loss for 2012 of 943m euros ($1.24bn; £816m).