Picture Credits: British Airways
London, UNITED KINGDOM — International Airlines Group (IAG), the parent company of British Airways, Iberia, Aer Lingus, Vueling, and Level, has made headlines with a massive $23 billion investment in new long-haul aircraft. The announcement came as the group posted robust financial results for Q1 2025 and addressed the ongoing impact of global trade tariffs on aviation.
Strategic Fleet Renewal
IAG’s new aircraft order includes:
- 32 Boeing 787-10s for British Airways
- 21 Airbus A330-900neos for Iberia, Aer Lingus, and Level
- Options for 18 more aircraft, including Airbus A350s and Boeing 777-9s
This order, one of the largest in recent years, is part of IAG’s fleet renewal strategy. The new jets will replace 35 older wide-body aircraft, improving fuel efficiency, lowering emissions, and enhancing the long-haul passenger experience. Deliveries are expected to begin later this decade, with the aircraft serving key routes across the Atlantic and Latin America.
Solid Start to 2025
Financially, IAG reported an operating profit of €198 million for the first quarter of 2025 up from €9 million during the same period last year. The results beat market expectations, driven by:
- Strong demand for transatlantic and South American travel
- A rebound in premium cabin bookings
- High load factors across its major airline brands
The company reaffirmed its full-year profit guidance at €4.6 billion, up from €4.2 billion in 2024.
Tariffs and Trade: A Balancing Act
The timing of the aircraft order comes against a backdrop of shifting international trade policies. The United States recently imposed a 10% tariff on a range of British imports but exempted aircraft engines made by Rolls-Royce, a major supplier for the Airbus A330-900neo.
This exemption offers relief for IAG, which would have otherwise faced higher acquisition costs. However, not all industry leaders are optimistic. Airbus CEO Guillaume Faury recently called for an end to what he described as “damaging trade tensions,” warning that “there are no winners in a tariff war, only losers.”
Despite the challenges, IAG’s CEO Luis Gallego said the group is focused on long-term sustainability and resilience. “This investment shows our confidence in the future of global air travel,” Gallego said. “We’re modernizing our fleet and preparing to meet the needs of tomorrow’s travelers.”
Looking Ahead
With a strong financial footing, a clear fleet strategy, and a watchful eye on global policy shifts, IAG is positioning itself to remain competitive in a complex aviation landscape.
Whether global tariffs ease or persist, the group’s commitment to modern, efficient aircraft signals a bet on long-term growth and a return to pre-pandemic travel volumes sooner than later.
