London (Agencies): The International Airlines Group (IAG), owner of British Airways and Iberia, has announced a multi-billion dollar order for Boeing and Airbus aircraft, signaling confidence in global air travel demand despite economic uncertainties.
IAG revealed an order for 32 Boeing jets and 21 Airbus planes, scheduled for delivery between 2028 and 2033. At list prices, the Boeing aircraft are valued at $12.7 billion, while the Airbus planes total $7.8 billion. However, IAG confirmed it had secured a “substantial discount” on the deal.
The purchase follows a turnaround in IAG’s first-quarter performance, which beat expectations. The airline group posted a net profit of €176 million ($198 million), a sharp improvement from a €4 million loss recorded one year earlier. Revenue grew by nearly 10%, reinforcing optimism about long-term travel demand.
IAG’s expansion strategy aligns with broader industry trends, as airlines worldwide push forward with fleet renewals and expansions. The company noted that while most of the new aircraft will replace aging fleets, about one-third of the order is aimed at growth.
The news provides a boost for Boeing, which has faced challenges stemming from quality control issues, lawsuits, and geopolitical tensions. China recently halted new Boeing aircraft purchases, citing tariffs imposed by the U.S. government. Additionally, ongoing trade negotiations between the U.S. and the European Union could further impact Boeing if an agreement is not reached.
Shares in IAG climbed more than 2% following the announcement, reflecting investor confidence in the group’s growth trajectory.