IAG buys USD6.25 billion worth of short-haul jets from Boeing

(Alliance News) - International Consolidated Airlines Group SA on Thursday said it has reached an ...

Alliance News 19 May, 2022 | 8:42AM
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(Alliance News) - International Consolidated Airlines Group SA on Thursday said it has reached an agreement to order 50 short-haul aircraft from Boeing Co.

The London-based airline said it will buy 25 737-8200 and 25 737-10 jets, plus 100 options.

The planes, worth USD6.25 billion at list prices, will be delivered between 2023 and 2027 and can be used by any airline in the group for fleet replacement. IAG's airlines include British Airways, Iberia, Aer Lingus, and Vueling.

IAG did not disclose the price paid for the planes, but did note it has negotiated a "substantial" discount from the list price of USD120 million per B737-8200 and USD130 million per B737-10. IAG said it has a range of financing options and will chose the most appropriate option closer to the delivery time.

"The addition of new Boeing 737s is an important part of IAG's short-haul fleet renewal," said IAG Chief Executive Luis Gallego. "These latest generation aircraft are more fuel efficient than those they will replace and in line with our commitment to achieving net zero carbon emissions by 2050."

Shares in IAG were 1.0% lower at 122.70 pence in London on Thursday morning.

By Sophie Rose; sophierose@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
International Consolidated Airlines Group SA 105.78 GBX 2.80
Boeing Co 136.31 USD -1.01

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