International Airlines Group (IAG) backs Ampaire with a new investment to help adapt hybrid-electric technologies for commercial aviation
- IAG will work with Ampaire to explore how hybrid-electric Auxiliary Power Unit (APU) solutions could reduce aircraft fuel consumption on the ground
- IAG has participated in the funding round through its corporate venturing arm, IAGi Ventures, alongside a number of new and existing investors
London, 18 August 2026 - International Airlines Group (IAG) has participated in the £14 million ($19 million) Series B funding round for Ampaire, working with the start-up to explore how hybrid-electric APU solutions could reduce aircraft fuel consumption on the ground. IAG has been joined by new and existing investors including DiamondStream Partners and Alaska Airlines, among others.
Ampaire, which was part of IAG’s 2025 flagship open innovation programme - IAGi Accelerator - is developing technology that can be fitted to existing aircraft to combine electric power with conventional engines, helping airlines reduce fuel consumption, emissions and operating costs.
As part of the six-month Accelerator programme, IAG worked with Ampaire to understand the benefits of retrofitting hybrid-electric APU solutions to existing aircraft. APUs are small power units at the back of an aircraft that keep systems running while the aircraft is on the ground. Today, many aircraft use fuel-powered APUs while on the ground at airports around the world.
By backing Ampaire, IAG can help shape the application of Ampaire's core technology towards products relevant for commercial aviation, providing valuable operational insight, industry expertise and a clearer understanding of airline requirements as the technology develops towards future deployment.
Raza Ali, Managing Partner, IAGi Ventures, said: “Since Ampaire joined our innovation programme last year, we have been impressed by both the scale of its operations and the potential of its technology. What excites us most is its practical approach to reducing aviation emissions and we look forward to exploring how hybrid-electric APU solutions could be fitted to aircraft already in service today to reduce aircraft fuel consumption on the ground.”
Kevin Noertker, co-founder and CEO of Ampaire, commented: “This financing is about turning proven hybrid-electric performance into commercialized products and scaled operations. We have consistently demonstrated the technology in flight; this capital accelerates our deployment with customers, and expands our supply chain, manufacturing and operating capabilities required to reach commercial scale.”
The investment, made through IAGi Ventures, reflects IAG’s continued focus on innovation and technology that has the potential to transform aviation. IAG recently announced investments in Verve Motion, a wearable robotics company and MAKO, an Australian start-up developing a shark-skin inspired drag-reduction film that covers an aircraft fuselage.