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yesterday

IAG Confirms $23 Billion Aircraft Order Following US-UK Trade Agreement

The British Airways parent company will acquire 53 Boeing and Airbus planes as part of its fleet renewal strategy, leveraging tariff exemptions from the new trade deal.

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A British Airways Boeing 777 passes a British Airways Airbus as it takes off from Heathrow Airport, in London, Britain, November 28, 2023. REUTERS/Peter Nicholls/File Photo
The logo of Airbus is pictured outside the Airbus facility in Saint-Nazaire, France, November 7, 2023. REUTERS/Stephane Mahe/File Photo
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Overview

  • IAG has announced the purchase of 32 Boeing 787-10s and 21 Airbus A330-900neos, with deliveries planned between 2028 and 2033, pending shareholder approval.
  • The orders, valued at $23 billion at list prices, were secured with substantial discounts and include options for additional aircraft.
  • The US-UK trade agreement eliminated tariffs on plane engines and parts, facilitating IAG's decision to expand its fleet with both American and European manufacturers.
  • IAG reported strong Q1 financial results, including 9.6% revenue growth to €7 billion and a €176 million profit after tax, supporting fleet investments and shareholder returns.
  • The Boeing planes will use General Electric engines, while the Airbus aircraft will feature Rolls-Royce engines, highlighting IAG's strategic partnerships with key manufacturers.