By Pierre Bertrand

British Airways owner International Consolidated Airlines said it ordered 53 planes from Boeing and Airbus, marking a significant investment in its fleet despite uncertainty in the sector stemming from trade tensions.

The airline group, which also houses Iberia and Vueling among others, said it ordered 32 Boeing 787-10 aircraft for British Airways and 21 Airbus A330-900neo aircraft which it said could be deployed to Iberia or its other companies Aer Lingus or Level.

The aircraft are due to be delivered between 2028 and 2033, with the orders subject to shareholder approval in June, IAG said Friday.

The move comes on the heels of Thursday's framework trade agreement between the U.S. and the U.K., in which both countries agreed to curtail tariffs on certain goods, including Rolls-Royce jet engines and parts.

IAG didn't disclose financial details of the order, but Commerce Secretary Howard Lutnick on Thursday said a British airline, which he didn't name, would announce that it is buying $10 billion of Boeing planes.

Chief Executive Officer Lluis Gallego, however, stressed in a post-earnings call with journalists on Friday that the plane orders were negotiated ahead of the news of the trade talks.

"We welcome the agreement but this negotiation process started a long time ago," Gallego said.

As part of the order agreement, British Airways holds the right to purchase up to 10 more U.S.-made Boeing 787s, while IAG can buy up to 13 additional Airbus A330-900neo aircraft, the company said.

While U.S. carriers such as American Airlines and Delta Air Lines have recently withdrawn guidance amid declining domestic demand and tariff-related uncertainty, IAG expressed its confidence in its North Atlantic market.

Demand for premium cabin space appears to be mitigating softness for U.S. point-of-sale economy seating, IAG said after passenger unit revenue for the region increased by 13%, marking the steepest growth across the whole of the company.

Strong overall demand for flights meant that its second-quarter was around 80% booked, with revenue ahead of its year-earlier level.

IAG maintained its guidance for 2025, although Gallego said it was yet too early to say for sure how the rest of the year will play out

In the first three months, IAG swung to a first-quarter profit of 176 million euros, equivalent to $197.6 million, from a loss of 4 million euros in the same period a year earlier.

Revenue rose 9.6% to 7.04 billion euros, with growth in both passenger and cargo income.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

May 09, 2025 04:21 ET (08:21 GMT)

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