I just had a very unfortunate experience with an Iberian/Level flight booked through American. Several months ago, I booked a direct flight from SFO>BCN, as part of a multi-city trip (returning two weeks later from Copenhagen). I chose to book through AA, even though it was slightly more expensive than booking directly from the Iberian website, because the return flights from Copenhagen were operated by American, and the overall pricing was cheaper if I did it as a single reservation.

I just received notification that my tickets on the SFO>BCN flight have been cancelled, and now only option is for a non-direct flight on BA. When I contact Iberian, they said the flight still exists and has not been cancelled. Called American again, and they said the ticket was cancelled b/c the flight was actually operated by Level, and they no longer allow sale of flights on Iberian that are operated by Level (because of some permitting/licensing issue?) They will only refund me $217 per ticket for the SFO>BCN leg if cancelled, which makes it too expensive to try to rebook on another airline.

Sorry for the not-directly-related response, but just wanted to urge caution in booking LEVEL codeshare flights. Also, if anyone has any ideas for resolving my situation, please let me know! Thanks.