BA-Boeing deal comes with sweetener for Rolls-Royce – Daily Business

A deal for new aircraft has emerged as an early winner for both sides in the trade agreement between the UK and the US.

International Airlines Group (IAG), owner of British Airways, has ordered 32 US-built Boeing 787-10 planes, said to be worth $10 billion, as part of a bigger deal that came with a sweetener for UK aero engine maker Rolls-Royce.

Under the terms of the trade agreement, it secures tariff exemptions for Rolls-Royce engines and aircraft parts sold to the US.

Rolls-Royce engines won’t be used in the Boeing deal, but they will be used in 21 Airbus aircraft that British Airways is also buying.

Russ Mould, investment director at AJ Bell, says: “It looks like a classic Trump move: tell Keir Starmer that the UK has to buy American and the country will get something in return.

“If there’s one clear benefit to IAG from Trump returning to the White House, it’s that his policies have helped to drive down the oil price amid fears of a slowdown to global economic growth as result of tariffs. That slashes big bucks off IAG’s fuel bill.”

The news came as IAG recorded a near-tripling of first-quarter operating profits, way ahead of City expectations. It is on course, with the bumper summer season ahead, to hit profits of €4.6 billion for the year as a whole.