British Airways parent IAG orders 37 Airbus A320neo jets

British Airways parent IAG placed Thursday Jul. 28 a multi-billion-dollar order for 37 A320neo jets from Airbus, as the aviation industry charts its recovery from the pandemic.

IAG, which also owns Spain’s Iberia, said in a statement that it will convert 12 options into firm orders for A320neos and A321neos.

The London-based airline conglomerate will also order another 25 A320neo family jets with the option to purchase 50 more.

The deal, announced one week after Britain’s Farnborough Airshow, is worth between $4.44 billion and $5.18 billion at list prices depending on the mix of single-aisle aircraft.

The group will decide the number of each type of plane closer to delivery, which is between 2025 and 2028.

IAG added it had negotiated a “substantial discount”, as is common with big orders.

The new fuel-efficient planes will replace IAG’s older Airbus A320ceo aircraft in its short-haul fleet.

“The addition of these latest generation more fuel-efficient A320neos is an important step towards IAG meeting its climate commitments,” it said in the statement. Reuters.com