BRUSSELS, April 26 (Reuters) - EU antitrust regulators on Friday warned that British Airways owner IAG's bid to secure full control of Air Europa may reduce competition and lead to price increases.

The European Commission singled out the impact on Spanish domestic routes and short-haul and long-haul routes in a statement of objections to the companies, confirming a Reuters story earlier this month.

"The Commission is concerned that customers may face increased prices and/or decreased quality of services after the transaction," the EU competition watchdog said in a statement.

IAG, which also owns Spanish carrier Iberia, is prepared to give up more than 40% of Air Europa's 2023 flights to a rival to address the European Commission's concerns, a person with direct knowledge of the matter said.

The carrier is ready to give feeder traffic, slots, planes, crew, maintenance, ground handling and existing customer bookings on all divested routes to rivals, the source said. (Reporting by Foo Yun Chee; Editing by Sudip Kar-Gupta)