In a significant development for transatlantic trade, the United Kingdom is set to announce a monumental $10 billion purchase of Boeing aircraft. This announcement comes as part of a newly forged trade deal between the UK and the United States, which aims to bolster economic ties and facilitate smoother trade relations.
U.S. Commerce Secretary Howard Lutnick made the announcement on May 8, 2025, during a press conference where he highlighted the importance of the trade deal. "There's going to be an announcement in the UK that they are buying $10 billion worth of Boeing planes later today," Lutnick stated, adding that he would let the airline involved reveal the details. His comments were met with enthusiasm, emphasizing the collaborative spirit between the two nations.
The impending order is expected to be placed by British Airways, a major UK airline with a long-standing relationship with Boeing. British Airways has been in discussions about acquiring new widebody aircraft to replace its aging fleet, particularly the older Boeing 777s. The airline has a history of operating various Boeing models, including the 737, 747, 757, 767, 777, and 787 families, though only the 777 and 787 remain in service today.
According to fleet data from Cirium, British Airways currently operates 43 Boeing 777-200ERs, 16 Boeing 777-300ERs, and 41 Boeing 787s, encompassing the 787-8, 787-9, and 787-10 variants. Additionally, the airline has 25 outstanding orders with Boeing, which include 18 777Xs and seven 787-10s. The announcement of the new order is poised to solidify British Airways' commitment to Boeing as it seeks to modernize its fleet.
While British Airways appears to be the frontrunner in this deal, Virgin Atlantic, another UK airline that operates Boeing aircraft, has confirmed that it is not involved in this particular order. This clarification from Virgin Atlantic further narrows down the potential candidates for the massive purchase.
The trade deal itself, unveiled by President Donald Trump and UK Labour leader Sir Keir Starmer, is not limited to aircraft purchases. It encompasses broader economic collaboration, including a reduction in tariffs on various goods. Lutnick noted that the deal will also allow Rolls-Royce engines, which are often used in Boeing planes, to be imported tariff-free into the U.S. market. He remarked, "If you go step by step, in Aero & Commercial Planes, [the UK] sells Rolls-Royce engines to Boeing. We've agreed to let Rolls-Royce engines and those plane parts to come over tariff-free."
This exemption is particularly significant for Boeing, as it may lead to reduced costs for manufacturing and assembling aircraft in the U.S. The positive news surrounding the trade deal and the anticipated Boeing order has had a noticeable impact on the stock market, with Boeing shares rising approximately 3.1% during midday trading following the announcement.
While the specifics of the aircraft involved in the $10 billion order remain unclear, the announcement has already sparked interest and speculation within the aviation industry. The White House's graphic detailing the trade deal referred to $10 billion in "aircraft parts" purchases, leaving open the possibility of additional agreements or options related to future orders.
The announcement is expected to be made official later today, and it marks a significant milestone in the ongoing efforts to strengthen economic ties between the U.S. and the UK. As both nations navigate a post-Brexit landscape, this trade deal could pave the way for further collaborations across various sectors.
The implications of this deal extend beyond just the immediate economic benefits. It signifies a commitment to fostering long-term relationships between U.S. and UK businesses, particularly in the aerospace sector. As the world continues to recover from the economic impacts of the COVID-19 pandemic, such collaborations are crucial for driving growth and innovation.
In summary, the anticipated $10 billion order for Boeing aircraft by a UK airline is not just a significant financial transaction; it represents a broader strategy to enhance trade relations between the U.S. and the UK. With British Airways likely at the forefront of this order, the aviation industry is poised for a new chapter in its partnership with Boeing. The forthcoming details of this deal will undoubtedly be watched closely by stakeholders on both sides of the Atlantic.
