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UK Group Places Order for Dozens of Long-Range Jets

IAG Commits to Major Fleet Expansion with 71 Long-Range Aircraft Orders
International Airlines Group (IAG), the London-based parent company of British Airways, Iberia, Aer Lingus, and other European carriers, has announced a significant fleet expansion involving the acquisition of 71 long-range aircraft from Boeing and Airbus. This strategic move, disclosed in IAG’s latest quarterly report, aims to bolster the group’s transatlantic operations and modernize its aging fleet.
The order comprises 32 Boeing 787-10 Dreamliners and 21 Airbus A330-900neo aircraft, with deliveries scheduled between 2028 and 2033. Additionally, IAG confirmed the purchase of 21 Airbus A220-900neo jets. The group also exercised prior options to acquire six Boeing 777-9s and 12 Airbus A350s, expected to be delivered between 2027 and 2030. The total value of these orders exceeds $22 billion based on list prices, although the precise financial terms have not been disclosed.
IAG emphasized that these investments align with its broader strategy to enhance operational efficiency, reduce carbon emissions, and elevate the customer experience. The new aircraft are anticipated to deliver improved fuel efficiency and a lower environmental footprint, supporting the group’s commitment to sustainability.
Strategic Context and Industry Implications
This announcement follows closely on the heels of a new trade agreement between the United States and the United Kingdom, which expands U.S. market access for British goods and reduces tariffs on select products. The agreement is expected to facilitate transatlantic commerce, including the aviation sector, by lowering tariffs on U.K. car imports and exempting Britain from steel and aluminum tariffs. It also lays the groundwork for future negotiations on digital trade and financial services.
IAG’s ambitious fleet renewal occurs amid ongoing supply chain challenges affecting the global aviation industry. The scale of the order will test the capacity of both Boeing and Airbus to meet delivery schedules as supply constraints persist. Concurrently, competitors are placing similar large-scale orders, intensifying the race to modernize fleets and improve operational efficiency. This surge in demand is likely to increase competition among airlines and may exert pressure on aircraft pricing and delivery timelines.
Despite forecasts of weaker demand among some domestic carriers for the remainder of 2025, IAG remains optimistic. The group highlighted sustained strong demand across its core markets and brands, supported by robust performance in Latin America and Europe, as well as resilient North Atlantic demand, particularly in premium cabins. This strength has helped offset softness in U.S. economy leisure travel.
By prioritizing fleet modernization and sustainability, IAG aims to maintain its competitive advantage and support continued growth in key transatlantic and emerging markets, positioning itself to navigate ongoing industry challenges such as economic fluctuations and rising fuel costs.

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