The parent company of British Airways and Iberia has ordered more than 70 new widebody aircraft. The total deal, announced by IAG on Friday morning, forms one of the largest plane orders of the year so far.
European manufacturer Airbus and its U.S. rival Boeing are splitting the spoils across two separate transactions. IAG has agreed to buy 32 Boeing 787-10 Dreamliner jets, powered by General Electric engines. The airline group is also doubling down on its Airbus portfolio, with 21 A330-900 aircraft on the way. These will have Rolls-Royce engines.Â
The Boeing planes are due to be operated by British Airways, while the Airbus models will likely be shared between Aer Lingus, Iberia, and Level.
The split comes as no surprise, with BA already a well-established 787-10 operator, while the others already operate the previous generation A330 variant. This greatly simplifies the potential operational headaches of adding new aircraft into existing fleets and avoids the need for crew retraining.Â
As part of the deal, IAG also has rights for up to 10 extra 787s and up to 13 additional A330neos.Â
A Newly Disclosed Deal
The company had a further surprise.
Also on Friday, it revealed a previously undisclosed order for 18 more long-haul planes. This earlier deal comprises six A350-900s for Spanish flag carrier Iberia, as well as six A350-1000s and six Boeing 777-9s for British Airways. It brings the total – not including options – to 71 twin-aisle aircraft.Â
All of the jets are due for delivery between 2028 and 2033. IAG says they will be used to replace older planes and grow the company’s overall fleet.Â
The order came as IAG published its first quarter results. The Anglo-Spanish company reported a profit with lower fuel costs and higher fares contributing towards the positive result.
However, it wasn’t all good news – IAG CEO Luis Gallego confirmed some softness in demand in the economy cabin among U.S. outbound travelers. This broadly echoed comments from the financial chief of Virgin Atlantic in late March.
Airlines Sector Stock Index Performance Year-to-Date
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