International Airlines Group (IAG) has reached agreement with Boeing for new long-haul aircraft for the group’s fleet.

IAG plans to convert 18 existing Boeing 787s options into firm orders for British Airways.

They will be used to replace some of the airline’s Boeing 747-400 aircraft between 2017 and 2021.

For Iberia, IAG has reached agreement with Boeing to secure commercial terms and delivery slots that could lead to an order for Boeing 787s.

Firm orders will only be made when Iberia has restructured and reduced its cost base and is in a position grow profitably.

British Airways’ 787s will be powered by Rolls-Royce Trent 1000 engines.

The engine order includes a comprehensive maintenance package with total care agreement.

Willie Walsh, IAG chief executive, said: “British Airways has 24 Boeing 787s on order already and we plan to boost this by a further 18 aircraft by exercising our options. 

“The aircraft offers a step change in fuel burn efficiency versus our existing aircraft with improvements in fuel cost per seat of more than 20 per cent.

“New technology engines and improved aerodynamics will lower fuel burn leading to reduced carbon and NOx emissions.

“The creation of IAG has resulted in greater buying power for both airlines through joint procurement and we have been able to obtain delivery slots for Iberia as part of British Airways’ order”.

British Airways has 118 wide-bodied long-haul aircraft in its fleet with 42 aircraft (12 A380s, 24 B787s, six B777-300ERs) already ordered.

Iberia has 31 wide-bodied long-haul aircraft in its fleet with six A330 aircraft already ordered.

The fleet order is subject to approval by IAG shareholders.