International Airlines Group, a London-based holding company that controls British Airways, Iberia, Aer Lingus, and several more EU-focused carriers, announced it will acquire 71 long-range aircraft from both Boeing and Airbus as it works to expand transatlantic service. Most of those new jet orders were announced by IAG in its quarterly statement one day after the revelation of a new trade agreement between the United States and the United Kingdom.
IAG identified its purchases as 32 Boeing 787-10 Dreamliners and 21 Airbus A220-900neo aircraft, to be delivered between 2028 and 2033. Following news of the U.S.-U.K. agreement, Commerce Department sources indicated the U.S.-sourced aircraft will carry an estimated of $10 billion.
Based on reported prices for the 787-10, 32 of those aircraft would be worth $10.8 billion, though neither the buyer nor Boeing has commented on the purchase agreement.
IAG’s order for 21 Airbus A330-900neo aircraft would have an estimated cost of $6.5 billion.
Along with those purchases, in March IAG exercised previous options to acquire six Boeing 777-9 (estimated, $1.75 billion) and 12 Airbus A350 jets ($3.7 billion.) These aircraft will be delivered between 2027 and 2030.
The buyer described its investments as part of its ongoing investment in new aircraft to promote operational efficiency, reduce emissions, and enhance customer service.
In addition to promoting new U.K. market access opportunities for U.S. farmers and businesses in the U.K., the agreement maintains a 10% tariff on many U.K. goods entering the US, but reduces the 25% tariff on cars to 10% for the first 100,000 vehicles imported annually. It also exempts Britain from tariffs on steel and aluminum, among other provisions for U.S. beef exports to Britain; and the two countries agreed to negotiate new digital trade provisions, including financial services.
IAG’s investment plans, and its strategy to expand transatlantic service, contrast with recent reports that some domestic carriers are forecasting weak demand during the remainder of 2025. “We are continuing to see good demand for air travel across our core markets and for our brands, highlighting the strength of our portfolio,” according to the Group’s Outlook for 2025. “Latin America and Europe continue to be strong and the North Atlantic demand has been robust, with strength in our premium cabin mitigating some recent softness in US point-of-sale economy leisure.”
