IAG Invests in Ampaire to Advance Hybrid-Electric Aviation Technology and Reduce Aircraft Ground Emissions
International Airlines Group (IAG) is strengthening its commitment to aviation innovation through a new investment in Ampaire, a developer of hybrid-electric aircraft technology focused on improving fuel efficiency and reducing emissions. The airline group has participated in Ampaire’s £14 million ($19 million) Series B funding round, joining a group of new and existing investors that includes DiamondStream Partners and Alaska Airlines.
The investment builds on an existing relationship between IAG and Ampaire that began through IAG’s 2025 flagship open innovation programme, the IAGi Accelerator. Through the programme, IAG and Ampaire worked together to investigate how hybrid-electric auxiliary power unit (APU) technology could be adapted for use on existing commercial aircraft.
The latest investment provides an opportunity for IAG to continue supporting Ampaire as the company develops its technology and explores potential applications for commercial aviation. In particular, the collaboration is focused on the potential of hybrid-electric APU systems to reduce aircraft fuel consumption while they are on the ground.
The initiative reflects the wider aviation industry’s efforts to improve operational efficiency and reduce emissions through technologies that can be introduced into existing aircraft fleets.
IAG Expands Its Support for Aviation Innovation
IAG’s participation in Ampaire’s Series B funding round represents a continuation of the group’s strategy of identifying and supporting emerging technologies that could deliver practical benefits for airlines.
Rather than focusing exclusively on future aircraft designs, Ampaire’s technology is intended to be compatible with existing aircraft. This approach could be particularly significant because commercial airlines operate large fleets of aircraft that remain in service for many years.
Developing technologies that can be retrofitted onto existing aircraft could provide airlines with additional opportunities to improve efficiency without waiting for entirely new generations of aircraft to enter service.
For IAG, the investment provides an opportunity to work closely with Ampaire as its technology progresses toward potential commercial applications.
The collaboration also allows IAG to contribute operational knowledge and airline-specific expertise, helping ensure that technology development remains aligned with the practical requirements of commercial aviation.
Hybrid-Electric Technology for Existing Aircraft
Ampaire is developing technology designed to combine electric power with conventional aircraft engines.
The objective is to use electric propulsion and power systems in areas where they can reduce reliance on conventional fuel-powered equipment.
One potential application is the aircraft auxiliary power unit.
APUs are relatively small power units installed at the rear of aircraft. They perform an important role by supplying energy to aircraft systems when the main engines are not operating.
APUs can provide electricity, support environmental control systems and help aircraft operate independently while they are parked at airports.
Traditionally, many commercial aircraft use fuel-powered APUs while on the ground.
Ampaire’s hybrid-electric approach seeks to introduce electric power into this process, potentially reducing the amount of aviation fuel consumed during ground operations.
Why Aircraft APUs Matter
Aircraft ground operations are an important area of focus for airlines seeking to improve efficiency.
Although aircraft spend most of their time in the air during revenue service, substantial energy is also consumed while they are parked, boarding passengers, preparing for departure or undergoing other ground procedures.
APUs can operate while an aircraft is at an airport, providing power for various systems without requiring the aircraft’s main engines to run.
Replacing or supplementing fuel-powered APU operation with electric power could therefore provide an opportunity to reduce fuel consumption during these periods.
The potential benefits extend beyond fuel savings.
Reducing the use of conventional fuel-powered APUs could also help decrease emissions associated with aircraft ground operations.
For airports located near densely populated communities, reducing aircraft-related emissions during ground operations could contribute to broader environmental objectives.
Potential to Reduce Operating Costs
Fuel is one of the largest operating expenses for airlines, meaning technologies capable of reducing fuel consumption can have a direct economic impact.
Ampaire’s hybrid-electric APU concept is designed to reduce fuel consumption by using electric power where practical.
If successfully deployed across commercial aircraft fleets, such technology could help airlines reduce the amount of fuel consumed during ground operations.
The potential cost savings would depend on several factors, including aircraft utilization, airport operations, electricity availability, system efficiency and installation costs.
However, even incremental improvements in fuel efficiency can become significant when applied across large commercial fleets and repeated flight operations.
For an airline group operating a substantial international network, technologies that deliver efficiency improvements across many aircraft could have meaningful long-term value.
Building on the IAGi Accelerator
The latest investment follows Ampaire’s participation in IAG’s 2025 IAGi Accelerator programme.
The six-month programme provided an opportunity for the companies to work together and evaluate the potential benefits of retrofitting hybrid-electric APU solutions onto existing aircraft.
The Accelerator model allows IAG to collaborate directly with technology companies and assess emerging innovations in an operational context.
For technology developers, working with an airline provides access to practical expertise that may not be available through laboratory or development environments alone.
Airlines understand the operational requirements associated with aircraft maintenance, turnaround times, airport infrastructure, safety procedures and fleet management.
That knowledge can help technology companies identify the challenges that must be addressed before a new system can be deployed commercially.
From Innovation Programme to Investment
Ampaire’s progression from participation in IAG’s innovation programme to receiving investment from the airline group demonstrates how corporate innovation programmes can evolve into longer-term strategic relationships.
During the Accelerator programme, IAG and Ampaire were able to investigate the practical application of hybrid-electric APU technology.
The experience provided both organizations with a better understanding of the potential benefits and requirements associated with retrofitting such systems to existing aircraft.
IAG’s subsequent investment gives the airline group an opportunity to remain involved as Ampaire continues developing its technology.
This type of relationship can help bridge the gap between early-stage technology development and potential commercial aviation deployment.
Supporting Commercial Aviation Applications
One of the key benefits of IAG’s investment is the opportunity to help shape how Ampaire’s core technology could be adapted for commercial aviation.
Technology developed for aviation must satisfy demanding operational requirements.
Aircraft systems need to meet stringent safety and reliability standards, integrate with existing equipment and remain practical to maintain throughout an aircraft’s operational life.
They must also fit within airline operating procedures without creating unnecessary complexity or increasing turnaround times.
By contributing operational insight and industry expertise, IAG can help Ampaire better understand these requirements.
The partnership could therefore support the development of products that are more closely aligned with the needs of commercial airlines.
Importance of Retrofitting Existing Aircraft
The ability to retrofit new technologies onto existing aircraft is increasingly important for the aviation industry.
Aircraft can remain in service for decades, meaning airlines cannot rely solely on new aircraft deliveries to achieve efficiency improvements.
A technology that can be installed on aircraft already operating in commercial fleets could potentially be introduced more quickly across the industry.
Retrofitting can also allow airlines to target specific areas of operational performance without replacing an entire aircraft.
For IAG and Ampaire, the focus on hybrid-electric APUs is therefore relevant to the current fleet as well as future aviation technologies.
The approach could provide a pathway for introducing electric technology into commercial aviation incrementally.
Broader Aviation Sustainability Goals
The investment is also consistent with the aviation industry’s broader focus on reducing fuel consumption and emissions.
Airlines, aircraft manufacturers, technology companies and airports are exploring multiple pathways toward lower-emission aviation.
These include sustainable aviation fuels, more efficient aircraft designs, alternative propulsion systems, operational improvements and electrification.
Hybrid-electric systems represent one element of this broader technology landscape.
While fully electric propulsion may be difficult to apply to larger commercial aircraft because of current battery energy-density limitations, smaller electrical systems can potentially be deployed in targeted applications.
Using electricity to support aircraft systems on the ground represents one such potential application.
This approach could allow airlines to capture some of the benefits of electrification while continuing to operate conventional aircraft and engines.
New Investment Partners Join the Round
IAG participated in Ampaire’s £14 million Series B funding round alongside a group of new and existing investors.
The investor group includes DiamondStream Partners and Alaska Airlines, among others.
The participation of multiple aviation-related investors provides Ampaire with access to a range of industry knowledge and commercial perspectives.
Strategic investment from airlines can be particularly valuable for aviation technology companies because it provides a direct connection to potential future customers and operators.
For Ampaire, support from organizations involved in commercial aviation can help validate the relevance of its technology while providing opportunities to better understand the requirements of airline fleets.
A Practical Approach to Aircraft Electrification
Ampaire’s work illustrates a practical approach to aircraft electrification.
Rather than attempting to replace conventional propulsion systems across entire commercial aircraft immediately, hybrid-electric technology can be introduced in specific areas where electric power can provide operational benefits.
The APU is one such area because it operates independently of the aircraft’s main propulsion engines and is primarily used to provide power and other services while the aircraft is on the ground.
This makes it a potentially suitable application for hybrid-electric technology.
If successful, such systems could provide a stepping stone toward broader adoption of electric technologies throughout aviation.
Improving the Ground Experience
Aircraft ground operations involve a complex series of activities, including passenger boarding, baggage handling, cabin preparation, cargo loading, fueling and aircraft servicing.
Power is required throughout many of these processes.
APUs play an important role by providing aircraft systems with power when the main engines are switched off.
Reducing the fuel required to operate these systems could contribute to more efficient airport operations.
For airlines, improvements in ground efficiency can complement broader initiatives involving aircraft performance, route planning and fleet modernization.
The cumulative effect of multiple efficiency measures can become increasingly important as airlines seek to control costs while reducing their environmental impact.
IAG’s Role in Future Aviation Technology
IAG’s investment in Ampaire is part of a broader approach to identifying emerging technologies that could support the future of commercial aviation.
Through programmes such as IAGi Accelerator, the group can engage with startups and technology developers at relatively early stages of development.
These relationships allow IAG to evaluate technologies based on real-world airline requirements rather than relying solely on theoretical performance.
The Ampaire collaboration demonstrates how this model can lead to continued engagement beyond an initial innovation programme.
By becoming an investor, IAG gains a deeper role in supporting Ampaire’s development while maintaining access to the company’s evolving technology.
Potential Benefits for Airlines
If Ampaire’s technology progresses successfully toward commercial deployment, hybrid-electric APU systems could potentially provide several benefits to airline operators.
These may include reduced fuel consumption during ground operations, lower associated emissions and potential reductions in operating costs.
Retrofitting could also provide airlines with a pathway to introduce the technology into existing aircraft rather than waiting for new aircraft deliveries.
However, successful commercial deployment will depend on further development, testing, certification, aircraft integration and economic evaluation.
The collaboration between IAG and Ampaire provides an opportunity to address these considerations as the technology evolves.
Looking Toward Future Deployment
The latest investment represents an important step in the relationship between IAG and Ampaire.
The two companies have already explored the potential of hybrid-electric APU technology through the IAGi Accelerator programme. IAG’s participation in the Series B financing now provides an opportunity to continue that work and contribute to the development of aviation applications.
For Ampaire, the funding provides additional resources to advance its technology and pursue new opportunities in the commercial aviation market.
For IAG, the investment provides access to a technology platform that could potentially improve aircraft efficiency while supporting the group’s broader innovation objectives.
The involvement of other aviation-focused investors, including Alaska Airlines, further strengthens the commercial aviation perspective surrounding Ampaire’s development efforts.
The Road Ahead for Hybrid-Electric Aviation
Hybrid-electric technology is expected to remain an important area of research and development as the aviation industry explores ways to reduce fuel consumption and emissions.
The transition toward lower-emission aviation will likely involve multiple technologies rather than a single solution.
New aircraft designs, sustainable fuels, improved engines, advanced materials, electric systems and operational technologies can all contribute to improving aviation efficiency.
Ampaire’s hybrid-electric APU technology focuses on one specific part of this challenge: reducing the need for fuel-powered aircraft systems during ground operations.
The potential advantage of this approach is that it targets existing aircraft and a defined operational application.
For airlines, technologies that can be integrated into current fleets could complement investments in new aircraft and sustainable fuels.
IAG’s participation in Ampaire’s £14 million Series B funding round marks a significant continuation of the partnership between the airline group and the aviation technology company.
Following Ampaire’s participation in IAG’s 2025 IAGi Accelerator, the two organizations have developed a deeper understanding of how hybrid-electric APU technology could potentially be applied to existing commercial aircraft.
The technology is designed to combine electric power with conventional engines, with the objective of reducing fuel consumption, emissions and operating costs.
By investing in Ampaire, IAG can contribute operational insight, aviation expertise and knowledge of airline requirements as the technology progresses toward potential commercial deployment.
The involvement of other investors, including DiamondStream Partners and Alaska Airlines, adds further support to Ampaire’s development strategy.
While additional development and validation will be required before widespread airline deployment can take place, the collaboration highlights an increasingly important approach to aviation innovation: introducing practical electrification technologies into existing aircraft systems.
For IAG, the investment reinforces its commitment to supporting emerging technologies that can contribute to a more efficient aviation industry. For Ampaire, the Series B financing provides additional momentum as it works to translate its hybrid-electric technology into solutions capable of meeting the demanding requirements of commercial aviation.
As the industry continues its search for practical pathways to reduce fuel consumption and emissions, hybrid-electric systems could become an increasingly important part of the aviation technology landscape. IAG’s continued partnership with Ampaire positions both companies to explore how these technologies can move from innovation programmes toward potential real-world applications across commercial aircraft fleets.
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