LONDON - IAG, owner of British Airways and Spanish carrier Iberia, announced a multi-billion dollar order for Boeing and Airbus planes, as it maintained its outlook despite economic uncertainty.
Demand for air travel remains strong, IAG said, as US President Donald Trump's tariffs assault threatens to hamper global growth and knock business confidence.
The announcement comes one day after Britain and United States struck a trade deal to ease tariffs, during which US Commerce Secretary Howard Lutnick teased that Britain would announce $10-billion in new orders for Boeing planes.
"We continue to see resilient demand for air travel across all our markets, particularly in the premium cabins and despite the macroeconomic uncertainty," chief executive Luis Gallego said in an earnings statement.
IAG announced new orders for 32 planes from Boeing and 21 from Airbus for delivery from 2028 to 2033.
At list prices, the Boeing jets cost a combined $12.7-billion and the Airbus planes a total of $7.8-billion.
But as is customary with sizeable orders, IAG said it had negotiated a "substantial discount".
The orders are in addition to those exercised in March for 12 Airbus and six Boeing planes, bringing the total number announced Friday to 71.
"These new aircraft will enable IAG's airlines to grow and replace their long-haul fleets," the company said.
Most of the new aircraft are replacements, with one-third for growth of the company.