International Airlines Group continues to split its fleet between Airbus and Boeing, with confirmation of a 71 aircraft order to modernize and grow its long-haul operations. The deal adds 38 Boeing jets to the backlog while Airbus will deliver an additional 33 twin-aisle planes in the coming years.
Eighteen of the aircraft confirmed in the order are conversion of existing options. British Airways will add six more A350-1000 to its existing fleet of 18 planes. The carrier’s theoretical 777X fleet will also expand from 18 to 24 firm orders. Iberia will also see its A350-900 fleet grow by six via options converted to firm orders.
The option conversions are expected to be delivered between 2027-2030. That will depend, in large part, on Boeing’s ability to complete certification of the 777X. The original IAG 777X order was signed in 2019 noting an planned initial customer delivery in 2020. At this point 2026 is the earliest that is expected.
IAG added another 53 aircraft to the wide body backlog, beyond the option conversions, to address its medium-term long-haul requirements. The new order aircraft are expected to join the carrier’s operations from 2028-2033. IAG notes that two thirds of the new orders are flagged for fleet replacement, while the other third will drive growth for the carriers.
This includes 21 A330neo aircraft, expected to help Aer Lingus and LEVEL modernize their twin-aisle operations. The two carriers operate 22 A330ceo models today.
Another 32 787-10 aircraft will also join the fleet. These are expected to augment the existing 787-10 fleet at British Airways (11 frames), allowing the carrier to continue modernization of the fleet. The oldest of BA’s 777s will be more than 30 years old by the time this batch of 787-10s start arriving.
The deal is also being touted as part of a US-UK trade agreement, with $10 billion in value to Boeing. Yes, IAG is a Spanish company, but the Boeing planes will end up at a UK-registered subsidiary. They’ll be delivered direct to the UK and not via Spain. So that can be interpreted as a UK company buying a bunch of US goods to fit the narrative.
But it is hard to get to that $10bn number based on the actual prices for these planes.
Assuming all the 787-10s end up at BA the carrier will acquire a total of 38 new Boeing planes in this deal. Based on list price (which isn’t really published anymore because it is a silly number no one reasonable uses) that would potentially be a $12.8 billion order.
No one pays list price in this industry. Typical discounts are 50% or more. There’s no way this is a $10 or $13 billion order. But bigger numbers sound better, and the real prices aren’t public.
IAG also announced the 787s would be delivered with GE engines, while the Airbus fleet would take the Rolls-Royce option. The trade agreement and order (which almost certainly was happening whether the tariff mess was in play or not) will also see Rolls-Royce engines (manufactured in the UK) exempted from tariffs. That is a massive win for Boeing, much more important than these 38 frames.
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