British airline IAG, the parent company of British Airways and Iberia, on Thursday announced a series of purchase options with European planemaker Airbus for eleven A320neo and three A321neo aircraft at a list price of 1.7 billion euros.
The devices are typically delivered in 2024 and 2025
The company said in a statement that it had negotiated “significant discount“compared to this price this “firm orders” was implemented under the contract signed in August 2013. These orders are in addition to six A320neo and two A321neo options in March. These devices should be delivered in 2024 and 2025 and will replace older models. “These more modern and fuel efficient aircraft will provide both cost savings and environmental benefits for airlines.from the group, assures IAG. The group notes that the choice of engines for these devices, as well as the choice of financing method, will be made closer to the delivery date. The British carrier announced in May the end of an order for 50 Boeing 737 MAXs, with 100 other aircraft as options. The order was seen as a sign of confidence in the US planemaker, which has endured two years of shortages due to the pandemic and the backlog of the 737 MAX, the flagship model that was grounded for twenty months after two fatal crashes.
Britain’s Easyjet, for its part, last week announced a buyback option for 56 A320neo planes from Airbus at a price of about $6.5 billion. The airline industry has been one of the hardest hit by the Covid-19 pandemic, which has paralyzed global traffic for months. Demand is now picking up again and IAG said last month it expects a return to profitability from the second quarter, with plans to grow as the summer season approaches. The order announced on Thursday “another sign that IAG is drifting towards calmer skies“After the Pandemic and How”IAG expects its sales to be dynamic, especially on its short-haul flights, with fleet renewal a priority.commented Hargreaves Lansdown analyst Suzanne Streeter. “Long-haul demand, however, is taking longer to recover. The easing of travel restrictions in Asia is a good sign, but there are also fears that the global slowdown could derail the recovery.“, he continued. Following the lifting of health restrictions in many countries, particularly the United Kingdom, at the start of the year, carriers have been struggling to cope with a sharp increase in demand, mainly due to a lack of labour. British Airways continues its lean flight schedule. Against this backdrop, British Airways ground staff at Heathrow Airport voted late last week to strike over wages for the summer holidays. IAG was down 5.89% at 105.10 pence on the London Stock Exchange shortly before 2pm on Thursday.
Source: Le Figaro
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