British Airways Owner IAG Announces MultiBillion Pound Aircraft Deal

The International Consolidated Airlines Group (IAG), the parent company of British Airways, has unveiled plans for a major investment in its fleet. The group has committed to purchasing 53 new long-haul aircraft from Boeing and Airbus, securing its position as a key player in the aviation market. The agreement includes options to acquire an additional 23 planes, further solidifying its growth strategy.

The confirmed orders include 32 Boeing 787-10 aircraft, which are among the most expensive commercial jets globally, with a combined list price exceeding $10 billion. IAG has also finalised an order for 21 Airbus A330-900neo airliners, valued at $6 billion. Although the stated costs are significant, industry insiders note that bulk-purchasing agreements typically come with substantial discounts, especially amid recent operational challenges faced by both manufacturers.

IAG stated the new aircraft will be delivered between 2029 and 2030, aiming to enhance services on transatlantic routes, expand the Latin America-focused budget airline Level, and replace planes currently under costly short-term lease arrangements. These upgrades are expected to improve overall efficiency and capacity across the group’s operations.

The choice of engines for the new fleet reflects IAG’s strategic approach to operational reliability. While the Airbus A330 aircraft will continue using Rolls-Royce engines, the group has opted for General Electric engines for the new Boeing 787s over Rolls-Royce’s Trent 1000, which has faced ongoing performance issues.

IAG revealed the order alongside its impressive first-quarter financial results for 2025. The group posted an operating profit of €198 million, a significant jump from €68 million in the same period last year. Revenues increased by almost 10 per cent to €7 billion, with robust demand in core markets. The company is on track to achieve an annual operating profit of €4.6 billion, up from €4.2 billion last year, despite challenges such as a £40 million financial impact from a recent power outage at Heathrow Airport.

British Airways has contributed significantly to IAG’s strong performance, reporting its most successful first quarter since merging with Iberia 14 years ago. Despite macroeconomic uncertainties and geopolitical tensions, IAG stated it continues to see healthy demand across its key routes, particularly in the premium cabin segment, which has offset softening demand for economy leisure travel from the US market.

IAG’s announcement signals its confidence in long-term growth prospects, despite industry-wide concerns about potential challenges in transatlantic travel. The new fleet investments position the group to maintain its competitive advantage and capitalise on market opportunities in the coming years.