International Airlines Group will launch its new low-cost carrier in mid-2017 with fares as low 99 euros ($US149) one-way from Barcelona to the US west Coast, Argentina and the Dominican Republic.

The new long-haul LCC, branded LEVEL, will fly two new Airbus A330 aircraft fitted with 293 economy and 21 premium economy seats. The economy seats will be in a 2-4-2 configuration with a 30-inch seat pitch with 9-inch video screens while those travelling in premium economy will get a 37-inch pitch and 12-inch screens.

The new carrier is IAG’s response to the aggressive expansion on trans-Atlantic routes by Norwegian Airlines as well as moves by in the long-haul LCC market by  Lufthansa and Air France. Barcelona is the airline’s first hub but IAG has made no secret of the fact that it intends to expand to other European cities.

Everyone travelling on LEVEL will get some form of free entertainment and those in premium economy get checked luggage, meals, seat selection and the latest movie releases as part of the package.

The airline said those travelling in economy would be able to choose what they want to buy “based on a menu of choices” and high-speed internet connectivity will be available with prices starting at €8.99. 

Passengers will be able to earn and redeem Avios points, the loyalty currency for IAG airlines.

"LEVEL is an exciting new IAG airline brand which will bring a stylish and modern approach to flying at prices that are even more affordable,’’ IAG boss Willie Walsh said in a statement. “It will benefit from having the strength of one of the world's largest airline groups behind it.

"LEVEL will become IAG's fifth main airline brand alongside Aer Lingus, British Airways, Iberia and Vueling. It will complement our existing airline portfolio and further diversify our current customer base.

"Barcelona is Vueling's home base and this will allow customers to connect from Vueling's extensive European network onto LEVEL's longhaul flights.

"This is just the start. We're really excited about the opportunities for expansion and we plan to bring LEVEL to other European destinations.’’

Flights to Los Angeles start on June 1, 2017 and  will operate twice weekly while those to San Francisco (Oakland) start the next day on a three times a week schedule.

Twice-weekly services to Punta Cana, in the Dominican Republic, start on June 10, while three-times weekly services to Buenos Aires start June 17.