British Airways Owner IAG Orders 71 Aircraft for Long-Haul Fleet Expansion

International Airlines Group (IAG), the parent company of British Airways, Iberia, Aer Lingus, Vueling, and LEVEL, has announced a significant fleet expansion with an order for 71 long-haul aircraft from Airbus and Boeing.

The deal, valued at approximately $10 billion for the Boeing portion alone, aims to modernize and enhance the group’s long-haul operations, with deliveries scheduled between 2028 and 2033.

Order Details

• The order includes:
• 32 Boeing 787-10s for British Airways, with options for an additional 10 aircraft.
• 6 Boeing 777-9s for British Airways.
• 6 Airbus A350-1000s for British Airways.
• 6 Airbus A350-900s for Iberia.
• 21 Airbus A330-900neos, which can be deployed across Aer Lingus, Iberia, or LEVEL, with options for 13 more.

This strategic acquisition is part of IAG’s broader plan to replace older aircraft, such as British Airways’ aging Boeing 777s, and to bolster capacity on high-demand routes, particularly across the North Atlantic.

The Boeing 787-10s and 777-9s offer improved fuel efficiency and passenger comfort, while the Airbus A350s and A330-900neos provide flexibility for IAG’s diverse airline portfolio.

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Industry Context and Strategic Importance

The announcement comes amidst a recovering aviation sector, with IAG reporting strong demand for travel and a 3% profit increase in 2024, despite challenges like engine maintenance delays affecting its Boeing 787 fleet.

The new aircraft will support British Airways’ focus on high-return markets, particularly North America, where it operates some of its longest routes, including London to Sydney via Singapore, stretching over 9,000 miles.

Recent findings reflect industry enthusiasm, highlighting its role in modernizing IAG’s fleet. However, the deal also underscores ongoing supply chain pressures, as both Airbus and Boeing struggle to meet global demand, forcing carriers to retain older aircraft longer.

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Economic and Operational Impact

The order aligns with a new U.S.-U.K. trade agreement, as highlighted by the U.S. Trade Secretary, emphasizing the economic significance of the Boeing purchase. Industry sources suggest the split between Airbus and Boeing reflects IAG’s balanced approach to leveraging competition between the two manufacturers, ensuring flexibility and cost efficiency.

IAG’s investment follows a trend of fleet modernization among major carriers. For instance, Japan Airlines recently transitioned to Airbus A350-1000s for long-haul routes, and IndiGo is set to introduce A350s in 2027. IAG’s move positions it to compete with rivals like Lufthansa, which continues to operate less efficient Boeing 747s, and Emirates, with its extensive Airbus A380 fleet.

Challenges Ahead

Despite the optimistic outlook, IAG faces hurdles. Engine reliability issues, particularly with Rolls-Royce Trent 1000 engines on British Airways’ 787s, have grounded flights and disrupted schedules.

Additionally, aircraft delivery delays, a persistent issue for both Airbus and Boeing, could push back IAG’s timeline. In February 2025, IAG warned of reduced aircraft availability impacting its 2025 schedules, a concern echoed across the industry.

Did You Know? British Airways, part of IAG, was the first airline to operate the Boeing 747-400 across the Atlantic in 1989, revolutionizing long-haul travel. Now, its new 787-10s and 777-9s continue that legacy of innovation.

Looking Forward

IAG’s order signals confidence in the long-term recovery of global air travel and its commitment to sustainability through more fuel-efficient aircraft. The group’s Cardiff maintenance facility is also being upgraded to handle the new A350s, ensuring operational readiness.

As IAG navigates supply chain challenges and engine woes, this investment positions it to strengthen its competitive edge in the transatlantic and global markets.