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Boeing (BA-0.01%) is reaping the early rewards of the Trump administration’s first tariffs-era trade deal between the U.S. and the United Kingdom. A major order from British Airways (IAG-0.36%)’ parent company, IAG, just provided a crucial win for the U.S. aerospace giant after a turbulent year.
The order was formally announced Friday, one day after U.S. Commerce Secretary Howard Lutnick previewed it during a press event in the Oval Office alongside the U.S.-U.K. trade framework.
While the aircraft order is not technically part of the trade deal signed by U.S. and U.K. officials, it was promoted by Lutnick, who described it as an example of “strong transatlantic commerce.” The agreement, though still under negotiation, includes tariff rollbacks on British steel and autos, in exchange for expanded U.K. market access for U.S. beef and ethanol exports.
For Boeing, the timing and scale of the IAG order are significant.
The planes will primarily replace aging aircraft in British Airways’ long-haul fleet, with deliveries scheduled between 2028 and 2033. Though the deal is worth $12.7 billion at sticker prices, IAG confirmed it received substantial discounts (a common practice on orders this large). The company also secured options to buy 10 additional Boeing jets, providing flexibility as it looks to upgrade and expand its long-haul fleet.
Boeing’s stock rose modestly after the news of the deal: 1.4 %.
Luis Gallego, IAG’s CEO, described this as a “milestone” order that was part of a long-term strategy to upgrade its fleet, including to more energy-efficient planes. IAG is the parent company of British Airways, Iberia, Aer Lingus, and other European carriers.
“Looking ahead to the next decade, these new aircraft will enable us to strengthen our core markets and further improve our customer experience, while continuing to drive long-term value for our shareholders,” Gallego said.
The announcement came as part of IAG’s quarterly earnings report, where it reported strong financial results. The company made a profit of €198 million in the first quarter of 2025, up from €68 million a year earlier. Revenue was also up nearly 10%, and the company said travel demand remains strong across all its markets. IAG’s shares rose nearly 3% on the London Stock Exchange following the news.
As part of the same Boeing announcement, IAG also placed an order for 21 Airbus (AIR-1.40%) A330-900neo jets for its other airlines. That order is valued at around $8 billion and comes with options to buy 13 more planes later.