IAG orders 71 long-haul jets split between Airbus and Boeing

By Chandini Monnappa and Joanna Plucinska

(Reuters) - British Airways owner IAG on Friday unveiled plans to buy 71 long-haul aircraft from Airbus and Boeing, sharing a major fleet expansion across the Atlantic a day after Britain and the U.S. announced a trade deal.

The airline group announced a new order for 32 Boeing 787-10 aircraft for British Airways, and 21 Airbus A330-900neo aircraft. It also disclosed for the first time options exercised in March for six Airbus A350-900s, as well as six Airbus A350-1000s and six Boeing 777-9s.

That gives a total of 33 Airbus jets and 38 Boeing planes.

Hailing a trade deal between the two countries on Thursday, the United States said that Britain would buy $10 billion of Boeing jets. Industry sources also told Reuters that IAG would buy about 30 jets from Airbus, including A330neos and A350s.

IAG, whose airlines also include Iberia and Aer Lingus, said the Airbus A330-900neo aircraft would be powered by Rolls-Royce engines and British Airways' Boeing 787-10 aircraft would be powered by General Electric engines.

Rolls-Royce is the sole engine provider for the A330neo but competes with GE Aerospace for the 787, where it has lost significant market share to its U.S. rival.

IAG announced the order after it reported better than expected first-quarter profit. CEO Luis Gallego told journalists that the company had been working on the new plane deal "for a long time".

Analysts said the order was likely part of a longer-term strategy for the group, given most airlines won't receive current orders until the early 2030s.

"Airlines need to think in multi-year timeframes: they will have planes that will be reaching the end of their lives and will need replacing. Boeing and Airbus are sold out for years," said Bernstein's Alex Irving.

List prices for the A330-900neo and 787-10 are about $374 million and $397 million, respectively, based on January 2025 U.S. dollar terms, but airlines typically negotiate big discounts to official prices. IAG did not give the details of its discount.

IAG also said that British Airways had secured options to buy up to 10 additional Boeing 787s, and that the group had purchase rights for up to 13 more A330-900neos under its agreement with Airbus.

The order adds to an already large backlog of Boeing planes slated for UK purchasers - 149 in total, according to Boeing's published backlog.

Planemakers have been wrestling with supply chain snags and other challenges that have delayed deliveries.

Boeing is trying to ramp up production of its strongest-selling 737 MAX jet to a rate of 38 per month this year, after a difficult 2024 when output slumped due to a broad quality crisis that led to the replacement of its CEO.

IAG, one of the industry's most influential aircraft buyers, is closely watched by rivals, especially as global trade tensions spotlight major aircraft deals.

Bloomberg News on Thursday reported that IAG was poised to order 30 Boeing 787s and could secure options for further purchases.

(Reporting by Chandini Monnappa in Bengaluru. Editing by Sonia Cheema and Mark Potter)