In a move that has sent ripples through the global aviation industry, Korean Air has announced its largest-ever order with Boeing, agreeing to purchase 103 new aircraft in a deal valued at approximately $50 billion (KRW 70 trillion). This landmark agreement, formalized on August 25, 2025, at a high-profile signing ceremony in Washington, D.C., not only marks a pivotal moment for the South Korean flag carrier but also represents Boeing’s largest widebody order from any Asian airline to date, according to Boeing’s official news release.
The breakdown of the order is impressive by any standard. Korean Air will acquire 20 Boeing 777-9s, 25 Boeing 787-10 Dreamliners—manufactured at Boeing’s North Charleston site—50 Boeing 737-10s, and eight Boeing 777-8F freighters. Notably, this is the first time Korean Air has purchased the 777-8F, a freighter-class aircraft, as highlighted by TipRanks. The aircraft are scheduled for phased delivery through the end of 2030, with the long-term investment plan extending into the mid-to-late 2030s to account for global delivery delays currently affecting the aviation sector.
The total investment encompasses more than just the aircraft themselves. According to Runway Girl Network, the deal includes $36.2 billion allocated for the airplanes, $690 million for 19 spare engines, and an additional $13 billion earmarked for a comprehensive 20-year engine maintenance service contract with GE Aerospace. Korean Air will receive 11 spare engines from GE Aerospace and eight from CFM International, ensuring operational stability and safety across its expanding fleet.
The agreement was inked at the Korea-U.S. Business Roundtable event, entitled “Partnership for a Manufacturing Renaissance,” and was attended by an illustrious group of leaders from both countries. U.S. Secretary of Commerce Howard Lutnick and South Korea’s Minister of Trade, Industry and Energy Kim Jung-kwan presided over the ceremony, with Korean Air’s Chairman and CEO Walter Cho, Boeing Commercial Airplanes President and CEO Stephanie Pope, and GE Aerospace’s President and CEO Russell Stokes all present to mark the occasion.
Walter Cho didn’t mince words about the significance of the deal. As quoted in the Boeing press release, he stated, “Acquiring these next-generation aircraft is the core of our fleet modernization strategy, delivering significant gains in fuel efficiency and enhancing the passenger experience across our global network. This investment is also a critical enabler for our future as a merged airline with Asiana, to ensure that our combined carrier is one of the most competitive airlines in the industry.”
The timing of the deal is particularly noteworthy. Boeing has recently faced production challenges due to Federal Aviation Administration (FAA) caps, which have temporarily limited the company’s output. However, as reported by TipRanks, the FAA is working with Boeing on “tabletop exercises”—scenario-based planning sessions designed to anticipate and address issues that could arise as production ramps up. These exercises are expected to be completed by the end of September, potentially allowing Boeing to increase its manufacturing pace in the fourth quarter of 2025.
The news has had an immediate impact on Boeing’s fortunes. Investors responded enthusiastically, with Boeing’s stock price rising over 3% in afternoon trading following the announcement. Wall Street analysts have also taken notice, with TipRanks noting a “Strong Buy” consensus for Boeing shares, which have already rallied 31.1% over the past year. The average price target now sits at $258.17 per share, suggesting further upside for the aerospace giant.
Korean Air’s commitment to the new aircraft is part of a broader strategy to modernize and standardize its fleet around five highly efficient aircraft families: the Boeing 777, 787, and 737, as well as the Airbus A350 and A321-neo. According to Runway Girl Network, this approach is expected to ensure stable capacity growth, achieve economies of scale, enhance fuel efficiency, reduce carbon emissions, and improve the overall customer experience.
Stephanie Pope, President and CEO of Boeing Commercial Airplanes, underscored the partnership’s importance in the Boeing press release: “We are honored to strengthen our partnership with Korean Air through this landmark agreement, which reflects the value and capabilities of Boeing’s market-leading airplane family. As Korean Air transitions to a larger unified carrier, we are committed to supporting the airline’s growth with one of the world’s most efficient fleets.”
The 787-10 Dreamliner, one of the highlights of the order, can carry up to 336 passengers with a range of 11,730 kilometers (6,330 nautical miles), making it an ideal choice for Korean Air’s expansive international network. Korean Air currently operates 108 Boeing airplanes—including 737s, 747s, 777s, and 787s—and with 72 jets already on order, the carrier’s order book will swell to 175 aircraft once this deal is finalized. Korean Air’s Aerospace Division also plays a crucial role in the Boeing supply chain, providing components for the 787 Dreamliner, including its unique raked wingtip, and producing parts for the 737 MAX, 767, and 777 families.
Korean Air’s fleet expansion is also closely tied to its integration with Asiana Airlines, a process expected to reshape the competitive landscape in Asian aviation. The merged airline aims to be not just larger, but also more efficient and environmentally responsible. The focus on next-generation, fuel-efficient aircraft is central to this strategy, promising both economic and ecological benefits as Korean Air seeks to reduce its carbon footprint.
The airline’s history of U.S.-Korea cooperation stretches back more than five decades. As Runway Girl Network recounts, Korean Air launched its first U.S. cargo route in 1971 and its first passenger route to the U.S. in 1972. Today, Korean Air serves as a vital bridge between the two countries, operating a global hub at Incheon International Airport and carrying more than 23 million passengers in 2024 alone. The carrier serves 117 cities in 40 countries on five continents with a fleet of 161 aircraft and over 20,000 employees. Its reputation for safety and service is well-established, having garnered a 5-star rating from Skytrax and numerous Airline of the Year awards.
As the aviation industry continues to recover from recent global disruptions, Korean Air’s strategic investment stands as a testament to its confidence in long-term growth and its commitment to remaining at the forefront of international air travel. The deal also strengthens vital commercial ties between South Korea and the United States, with Korean Air collaborating closely with a range of U.S.-based aviation companies, including Pratt & Whitney, General Electric, Hamilton Sundstrand, and Honeywell.
With this historic order, Korean Air is poised to reinforce its status as a leading global airline, while Boeing secures a crucial vote of confidence at a time when the company is eager to ramp up production and restore its reputation for reliability and innovation. For both companies—and for the broader aviation sector—the sky, it seems, is the limit.
