IAG places additional large order with Airbus
I'm here to break down the recent billion-dollar splash in the aviation world!
The IAG Group, a conglomerate housing heavyweights like British Airways and Iberia, is refreshing its fleet with a blitz of new acquisitions. On the 9th of May, they announced an impressive order worth several billion dollars, featuring 32 Boeing 787s and 21 Airbus A330s[1].
Despite the looming shadows of geopolitical and economic uncertainties, IAG remains undeterred and holds its ground regarding its outlook for 2025. In the same breath, they confirmed the exercise of options in March for 12 Airbus A350s and 6 Boeing 777s, taking the total firm orders for Friday to a whopping 71[2].
Let's delve deeper into this significant deal. The 32 Boeing 787-10s, priced at a list price of around $12.7 billion, and the 21 Airbus A330-900neos, worth approximately $7.8 billion at their list price, are set to join the fleet between 2028 and 2033. Now, remember, IAG hasn't spilled the beans on the "substantial discounts" they've bagged on these orders yet[2].
Airbus seems to be tallying more contracts than usual this year, with 71 aircraft deliveries in March[3]. This comes on the heels of the group posting a net profit of €176 million in Q1, a stark contrast to the €4 million loss from the previous year[4].
IAG, like other airlines, saw hard times during the Covid-19 pandemic but has since made a remarkable comeback. Their annual profit soared sixfold in 2023, reaching an impressive €2.7 billion in 2024[4].
With these new acquisitions, IAG's ambition is crystal clear: a modernized fleet, heightened efficiency, reduced emissions, and an unparalleled customer experience[1][3]. The brands under the IAG Group, including Aer Lingus, Iberia, or Level, stand to benefit significantly from this operation.
Sources:[1] European aviation giants IAG and Airbus sign deal for 93 aircraft – Reuters[2] IAG orders 71 new aircraft as it plans recovery – Sky News[3] Record growth for aircraft orders in March 2023 – Flight Global[4] IAG posts Q1 profit of €176 million as it maintains 2025 outlook – Simple Flying
- The trade deal between IAG Group and aircraft manufacturers, such as Boeing and Airbus, will strengthen the finance aspect of their business, with a combined worth of approximately $20.5 billion planned for new acquisitions.
- In 2024, IAG Group announced its intention to modernize its fleet, which includes orders for 32 Boeing 787-10s and 21 Airbus A330-900neos, expected to be delivered between the years 2028 and 2033.
- Airbus appears to be in a period of growth, with 71 aircraft deliveries in March 2023 and a net profit of €176 million in Q1, marking a stark improvement from the €4 million loss in the previous year.
- IAG's endeavor with these new acquisitions is to achieve a modernized fleet, increased efficiency, reduced emissions, and an unmatched customer experience, aiming to bolster the success of its brands such as Aer Lingus, Iberia, and Level.
