UK Airline Plans $10 Billion Boeing Order, Bloomberg Reports

UK’s IAG Set to Place $10 Billion Boeing Order Amid Industry Challenges

The United Kingdom’s International Airlines Group (IAG), parent company of British Airways, is reportedly preparing to place a substantial order for Boeing aircraft valued at approximately $10 billion, according to Bloomberg News. The anticipated purchase is expected to include around 30 widebody jets, primarily Boeing’s Dreamliner models, underscoring the ongoing competition between Boeing and its European rival Airbus. Industry sources suggest that Airbus may also secure a portion of the order, reflecting the complex dynamics of aircraft procurement in the global aviation market.

Details and Strategic Implications of the Order

Although neither Boeing nor IAG has officially confirmed the transaction, insiders indicate that the order could encompass up to 24 Boeing 777-9 jets. This potential purchase may represent the exercise of options from IAG’s 2019 agreement for 42 Boeing 777-9 aircraft, a deal originally valued at $18.6 billion before discounts. The agreement was designed to modernize British Airways’ long-haul fleet by replacing aging Boeing 747s and 777-200s, aligning with IAG’s broader strategy of fleet renewal and sustainability enhancement.

The timing of this order is significant for Boeing, which continues to navigate a challenging operational environment marked by production bottlenecks, supply chain disruptions, and regulatory scrutiny. As of May 2025, Boeing’s commercial backlog stands at 5,595 unfilled orders, representing hundreds of billions of dollars in potential revenue. The 777X program, including the 777-9 variant, remains central to Boeing’s widebody offerings, promising improved fuel efficiency and reduced environmental impact for long-haul flights.

Operational Challenges and Market Impact

Despite the promising outlook of the 777X program, Boeing faces considerable hurdles in fulfilling new orders. The company has been affected by supply chain constraints, a recent machinists’ strike, and an FAA-imposed production cap limiting 737 output to 38 jets per month. In 2024, Boeing delivered only 348 aircraft, its lowest annual output since the onset of the COVID-19 pandemic, highlighting ongoing manufacturing pressures. These challenges may affect the delivery schedule and execution of any forthcoming agreements with IAG.

The reported order also reflects broader international trade and competitive dynamics. The UK’s decision to invest heavily in Boeing aircraft could prompt strategic responses from Airbus and other competitors, potentially influencing stock market valuations and procurement strategies across the airline industry. The possibility of Airbus securing part of the order further intensifies the rivalry between the two aerospace giants.

At present, the specifics of the UK order remain unconfirmed, with investors and aviation analysts awaiting official statements from Boeing and IAG. Should the deal proceed, the acquisition of advanced 777-9 jets would position British Airways at the forefront of sustainable aviation, setting new benchmarks for efficiency and environmental responsibility. This development could mark a pivotal moment for the global aviation sector as it continues to recover from recent disruptions, highlighting the intricate interplay of supply chain resilience, international trade, and strategic fleet renewal in the post-pandemic era.