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Despite economic uncertainty and potential headwinds from US tariffs, IAG, the owner of British Airways and Iberia, announced Friday a multi-billion dollar order for Boeing and Airbus planes. The company maintained its outlook, citing strong demand for air travel.
The announcement comes one day after Britain and the United States struck a trade deal to ease tariffs, during which US Commerce Secretary Howard Lutnick teased that Britain would announce $10 billion in new orders for Boeing planes.
"We continue to see resilient demand for air travel across all our markets, particularly in the premium cabins and despite the macroeconomic uncertainty," chief executive Luis Gallego said in an earnings statement.
IAG announced new orders for 32 planes from Boeing and 21 from Airbus for delivery from 2028 to 2033.
At list prices, the Boeing jets cost a combined $12.7 billion and the Airbus planes a total of $7.8 billion. But as is customary with sizable orders, IAG said it had negotiated a "substantial discount". The orders are in addition to those exercised in March for 12 Airbus and six Boeing planes, bringing the total number announced Friday to 71.
"These new aircraft will enable IAG's airlines to grow and replace their long-haul fleets," the company said. Most of the new aircraft are replacements, with one third for growth of the company.
The orders followed a turnaround in IAG's first quarter performance, which beat analysts' expectations. Net profit came in at 176 million euros ($198 million) in the first three months of 2025, up from a four-million-euro loss after tax one year earlier. Revenue increased almost 10 percent in the first quarter.
Shares in IAG rose more than two percent in reaction on London's top-tier FTSE 100 index, which was up slightly overall in morning trade.
In 2024, the company's full-year net profit increased three percent to 2.7 billion euros, compared with a year earlier.
The latest orders provide some good news for Boeing, a top US exporter and which has recently been targeted by China in retaliation to Trump's tariffs.
