The Collection, which will be printed by Artisan, will be sent out from January 2010 to 60,000 executive club members and other customers.
The launch issue is a 16+4pp magazine, but the page count is likely to at least double in succeeding issues.
"People are not sacrificing their expensive holidays, they're just bargaining harder," said Cedar editorial director Mark Jones.
With airlines' relationships with hotels, car hire and other holiday components, "it's the return of the package holiday in another guise," he added.
BA Holidays' managing director Claire Bentley said: "The premium holiday sector continues to perform well and the introduction of this new luxury magazine will further strengthen our offering, acting as a powerful marketing tool."
BA to target business travellers with luxury holiday magazine
Cedar Communications is to launch a new quarterly magazine for British Airways to promote luxury holiday destinations to its business travellers.