IAG, the group that owns British Airways (BA) has announced the purchase of 32 Boeing aircraft following the agreement of a US-UK trade deal. International Consolidated Airlines Group put in an order for than three dozen Boeing 787-10 Dreamliners on behalf of BA, just one day after US politicians predicted such a deal.
While the precise price point for the planes has not been revealed, US President Donald Trump and Trade Secretary Howard Lutnick said ahead of the announcement that a UK airline would be placing an order for “$10 billion (around €8.9 billion) worth of Boeing planes.” Delivery of the aircraft to the, in fact, British-Spanish group is expected between 2028 and 2033. Engines will be supplied by American General Electric engines, Boeing said.
The trade agreement, hailed as “historic”, has been signed by Trump and British Prime Minister Keir Starmer, and sees a promise of a reduced or zero US import rate on a variety of British goods, including cars and steel, as well as planes engines and other aircraft parts.
In a televised phone call with Prime Minister Keir Starmer, Donald Trump announces a ‘historic’ new trade deal between the USA and the UK, which he says ‘affirms reciprocity and fairness’. It is the US President's first finalised trade deal since he imposed sweeping worldwide… pic.twitter.com/GarleNC4Py
— Off-road girl 🏕Eva (@evvaavv922) May 8, 2025
Demand is “resilient”
The IAG order comes after a period of safety concerns and litigation about Boeing’s manufacturing and maintenance processes during which the firm has been accused of misleading officials, scrimping on checks, and planes losing parts mid-air. Amid fleeting groundings and hearings for one of only two aerospace giants in the world, the supply chain for new planes, already shaken by COVID-19, has become a source of complaints by airlines.
IAG has said that “despite the macroeconomic uncertainty”, demand for air travel remains “resilient”. With a first quarter 9.6 per cent rise in revenues and profitability up to €2 million, the group’s currently strong financial position allows it to confirm the capital expenditure, which CEO, Luis Gallego, said would “strengthen our core markets”.
Airbus benefits too
However, it is not relying only on Boeing for fleet renewal and expansion. The Boeing order is the second made recently, after IAG also contracted with the US firm’s European competitor, Airbus, for 21 A330-900neos, with engines to be made by the UK’s Rolls Royce. Those planes are destined not for British flag carrier BA, however, but for other IAG carriers: Aer Lingus, Iberia and Level.
The markets liked the IAG announcement and, with shares up by 2 per cent on the day, appeared to agree with Gallego, who hailed the deal as “a milestone in our strategy and transformation programme”.
