International Airlines Group (IAG), the parent company of U.K. flag carrier British Airways, will purchase 32 Boeing 787-10 Dreamliners.
The announcement, first teased by US Commerce Secretary Howard Lutnick during a White House press conference on Thursday, 8 May, comes as part of a broader bilateral trade deal unveiled by President Donald Trump and British Prime Minister Keir Starmer.
The deal, worth nearly $13 billion (£9.8 billion), is a much-needed win for Boeing as it continues to recover from years of bad press and setbacks.
IAG and British Airways Bet Big on Long-Haul Demand
British Airways, part of IAG, is investing heavily in long-haul travel despite a recent dip in transatlantic demand. The Dreamliner deal also includes options for 10 more. Unrelated to the Dreamliner deal, IAH says British Airways will also acquire six Boeing 777-9s and six Airbus A350-1000s.
IAG, which also owns Iberia, Aer Lingus, and Spanish carriers Vueling and LEVEL, will purchase 21 Airbus A330-900neo aircraft with options for 13 additional units, valued at $8 billion, to strengthen the long-haul fleets of Iberia, LEVEL, and Aer Lingus.
British Airways, operating 294 aircraft to over 200 destinations, has a long history with Boeing, having flown nearly every Boeing model except the 707 and 727. Despite softer demand in the U.S. economy leisure segment, IAG reports strong North Atlantic premium product demand and maintains its 2025 forecast.
The British Airways Dreamliners will use General Electric engines, while Rolls-Royce engines will power the A330-900neos.
Secretary Lutnick also announced that the US would allow tariff-free imports of Rolls-Royce engines as part of the U.K.-US trade deal, though this does not affect the Dreamliner order. Deliveries are scheduled between 2028 and 2033, assuming no geopolitical or other delays exacerbate existing backlogs at Boeing and Airbus.
Boeing’s Very Good Day
Meanwhile, Boeing’s having a banner day. In a separate announcement, China Airlines confirmed it’s joining the 777X club with an order for ten 777-9 passenger jets and four 777-8F freighters, plus options for five more 777-9s and four 777-8Fs.
The Taiwanese carrier says the jets, including the 777-9—the world’s largest twin-engine jet—will boost capacity and range on long-haul routes to North America and Europe while slashing fuel consumption by 20%. With a max capacity of 426 passengers, these jets will be workhorses for China Airlines.
Boeing notes that over 520 777X jets have been ordered worldwide, signaling strong demand for the next-gen widebody.
