I've travelled with Iberia a few times now (the in laws live in Spain) and have never had a problem with them. To get to Barcelona or Alicante, I've never payed more than about £100 return (through ebookers), and so I'm really rating them alongside the other low-cost airlines I've flown with.

The food is fine, although a bit ropey if you travel outside full meal hours -- they usually cook better than their cold food suggests. One minor gripe I have is that they don't often have English newspapers, but this is compensated by the fact that when you fly to Spain, the fact that they're the national airline means you get through the airport a lot quicker.

They usually show some rubbish Candid-camera style TV, but I tend to ignore all that and read anyway. I've always been seated well (as opposed to other airlines, which regularly split my wife and I), and never had a problem with baggage. Also, you don't get any of the problems with less pressurised cabins that I'm told is the case on some of the cheaper airlines. I'll quite happily travel with them again.