By Benjamin Katz

The parent company of British Airways said it had agreed to buy 32 Boeing 787-10s with General Electric engines, confirming purchases touted alongside the U.S.-U.K. trade deal on Thursday by U.S. Commerce Secretary Howard Lutnick.

-- The deals have a combined sticker price of $12.7 billion but International Consolidated Airlines said it had negotiated a substantial discount, as is standard for large aircraft deals.

-- The company also said it ordered 21 Airbus A330neo jets valued at $7.9 billion before the customary discounts.

-- Plus, it converted previously agreed options for 18 other Airbus and Boeing widebody jets.

IAG Chief Executive Luis Gallego said the aircraft deals had been in the works "for a long time," preceding trade talks between the U.S. and U.K. Still, he welcomed Thursday's agreement, noting aviation's decadeslong status as tariff-exempt. "We don't need tariffs," he said.

News of the jet orders came as IAG reported a swing back to profit in the first quarter helped by higher ticket prices and lower fuel costs. But Gallego did say the airline group had seen some softness in demand for economy seats from U.S. consumers. That was contrary to strong demand in Europe, South America, Africa and the Middle East.

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May 09, 2025 04:15 ET (08:15 GMT)

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