International Airlines Group (IAG) has reached agreement with Boeing to order 25 737-8200 and 25 737-10 aircraft, plus 100 options.

The aircraft will be delivered between 2023 and 2027 and can be used by any airline in the Group for fleet replacement.

Luis Gallego, IAG´s chief executive, said: “The addition of new Boeing 737s is an important part of IAG´s shorthaul fleet renewal. These latest generation aircraft are more fuel efficient than those they will replace and in line with our commitment to achieving net zero carbon emissions by 2050.”

The fleet order is subject to approval by IAG shareholders.

The B737-8200 list price is approximately US$120 million and the B737-10 list price is US$130 million. IAG says it has negotiated a substantial discount from the list price. The options are available for delivery between 2025 and 2028.