Posted By Global Banking and Finance Review
Posted on May 8, 2025
By Andrea Shalal and Paul Sandle
WASHINGTON/LONDON (Reuters) - The United States said on Thursday Britain would purchase $10 billion of Boeing jets and industry sources said British Airways owner IAG would also buy some 30 jets from Europe's Airbus in a fleet expansion split between transatlantic rivals.
U.S. Commerce Secretary Howard Lutnick revealed the U.S. part of the jet order on Thursday during the announcement of a bilateral trade deal between Britain and the United States.
Such an order would add to an already large backlog of Boeing planes slated for UK purchasers - 149 in total, according to Boeing's published backlog.
Lutnick said he would let the airline making the purchase announce the details.
IAG plans to order around 30 Boeing 787 jets and a similar number of Airbus long-haul planes including the A350 and A330neo models, according to three sources familiar with the matter.
"It's a split order," one of the sources told Reuters.
Details of the purchase were expected to be announced with IAG's quarterly earnings on Friday.
Boeing and Airbus declined comment and IAG could not immediately be reached for comment.
Bloomberg News reported that IAG was poised to order 30 Boeing 787s and could secure options for further purchases.
The UK-based airline group, whose carriers also include Iberia and Aer Lingus, is among the most influential aircraft buyers and its decisions are closely watched by other airlines.
Big-ticket aircraft purchases have captured wider attention across the globe as the industry is buffeted by trade tensions.
The European Union earlier included Boeing jets in a list of items earmarked for possible tariffs on U.S. goods if trade talks break down.
Airlines in non-EU Britain already have orders in the works for 109 Boeing planes and a leasing company has another 40 on order, according to Boeing's website.
Based on the models ordered, UK companies have an estimated $12 billion-plus worth in planes due from Boeing after allowing for typical industry discounts.
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.
(Reporting by Andrea Shalal and Gram Slattery in Washington, Allison Lampert in Montreal, Paul Sandle and Joanna Plucinska in London, Tim Hepher in Paris, Daniel Catchpole in Seattle; Writing by Daniel Catchpole and Tim Hepher; Editing by Mark Porter and Nick Zieminski, Kirsten Donovan)