IAG, Owner of British Airways, Buys 53 Boeing and Airbus Planes Amid Market Uncertainty

The parent company of British Airways, International Consolidated Airlines, has placed an order for 53 aircraft from both Boeing and Airbus. This substantial commitment to expanding their fleet comes amid uncertainties within the industry due to ongoing trade disputes.

The aviation conglomerate, which includes airlines like Iberia and Vueling along with several others, announced an order of 32 Boeing 787-10 planes destined for British Airways and 21 Airbus A330-900neo jets that may potentially be assigned to Iberia or their other carriers such as Aer Lingus or Level.

The delivery of the aircraft is scheduled for sometime between 2028 and 2033, and these orders will require shareholder approval in June as stated by IAG on Friday.

This development follows Thursday’s preliminary trade deal between the U.S. and the U.K., where both nations consented to reduce tariffs on specific items, such as Rolls-Royce jet engines and components.

IAG did not reveal the financial specifics of the order, however, Commerce Secretary Howard Lutnick mentioned on Thursday that an unnamed British carrier plans to declare it will purchase $10 billion worth of Boeing aircraft.

CEO Lluis Gallego emphasized during a post-earnings briefing with reporters on Friday that the aircraft orders were finalized prior to the announcement about the trade discussions.

"We appreciate the agreement, though this negotiation process began quite some time ago," Gallego stated.

Under the terms of the agreement, British Airways reserves the option to acquire as many as 10 additional U.S.-manufactured Boeing 787 jets. Meanwhile, IAG has the choice to purchase up to 13 extra Airbus A330-900neos, according to the statement from the firm.

Despite U.S. airlines like American Airlines and Delta Air Lines recently removing their forecasts due to falling domestic demand and uncertainties related to tariffs, IAG stated its continued optimism about the North Atlantic market.

IAG reported that demand for premium cabin seats seems to be offsetting the weakness in U.S. economy-class seat sales at points of sale. This was indicated by an increase of 13% in passenger unit revenue for the area, showing the highest growth throughout the entire company.

Robust general demand for travel resulted in approximately 80% of its second quarter being reserved, driving revenues higher than those from the previous year.

IAG kept its outlook for 2025 unchanged; however, Gallego stated that it was still too soon to determine with certainty the trajectory for the remainder of the year.

During the initial quarter, IAG reported a profit swing to €176 million ($197.6 million) from a loss of €4 million in the corresponding period the previous year.

The revenue increased by 9.6%, totaling 7.04 billion euros, driven by growth in both passenger and cargo earnings.

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