IAG orders 53 new Airbus and Boeing aircraft to modernize long-haul fleet
Why we think this is good
The order for 53 new Airbus and Boeing aircraft, with options for additional aircraft, suggests a positive strategic move by IAG to modernize its long-haul fleet and support growth in its core markets. The negotiated discounts on the list prices and the long-term delivery timeline are also positive factors. While the RNS does not contain an explicit profit upgrade or trading significantly ahead of expectations, the investment in fleet renewal is likely to drive long-term value for shareholders.
Key Points
- IAG orders 53 new Airbus and Boeing aircraft for long-haul fleet
- 32 Boeing 787-10 aircraft for British Airways, 21 Airbus A330-900neo aircraft
- Aircraft to be delivered between 2028 and 2033
- Order subject to shareholder approval
- IAG has negotiated substantial discounts from list prices
Summary
International Airlines Group (IAG) has ordered 53 new Airbus and Boeing aircraft for its long-haul fleet, comprising 32 Boeing 787-10 aircraft for British Airways and 21 Airbus A330-900neo aircraft. The order is subject to shareholder approval and the aircraft will be delivered between 2028 and 2033.
The new aircraft orders will enable IAG's airlines to grow and replace their long-haul fleets with modern, fuel-efficient planes. IAG has negotiated substantial discounts from the list prices for the aircraft. The order also grants IAG the rights to purchase up to 10 additional Boeing 787 aircraft and up to 13 additional Airbus A330-900neo aircraft.
The broker targets show a mix of Buy, Overweight, and Underweight recommendations, with price targets ranging from 250p to 420p.