American aviation giant Boeing and Korean Air on Wednesday announced the final order for 103 jets across the planemaker’s widebody and single-aisle airplane families.
The order, comprising 20 777-9, 25 787-10, 50 737-10, and eight 777-8 Freighter airplanes, fulfills Korean Air’s procurement commitment in August 2025.
“This milestone serves as a tangible outcome of bilateral trade negotiations and underscores the enduring strength of the US-Republic of Korea industrial alliance,” the two companies remarked.
Out of the aircraft in the order, only the 787 is currently certified for commercial service, while Boeing is still developing the 777-8 Freighter.
Aviation advisory and intelligence firm IBA estimated the aircraft order worth about USD 12.6 billion at current market prices after discounts.
Korean Air said the broader package is valued at USD 44.8 billion and also includes a USD 8.6 billion deal for the purchase of 21 spare engines from GE Aerospace and CFM International, along with a 15-year engine maintenance agreement covering 28 aircraft.
Korean Air said the investment would support its long-term fleet expansion following the integration of Asiana Airlines, apart from helping improve fuel efficiency as it transitions to newer aircraft models.
The plan, which is the largest in Korean Air’s history, was first unveiled during South Korean President Lee Jae-myung’s 2025 visit to Washington.
Korean Air CEO Cho Won-tae previously said that the newer aircraft would help Korean Air expand to more destinations in the United States and Latin America and that about 80% of the jets would replace existing aircraft in the carrier’s fleet.
Cho on Wednesday described the completion of the agreements as a major accomplishment and said the investment underscored ties between Washington and Seoul.
Korean Air Lines, like its industry peers, has been affected by the high jet fuel prices due to the supply shortage stemming from the ongoing Iran war.
The carrier reported a 34% drop in second-quarter operating profit, with surging fuel costs weighing big on earnings despite generating record Q2 revenue.
While operating profit for the April-June period fell to 261.8 billion won (USD 174.52 million) from 398.9 billion won a year earlier, revenue climbed to 5.02 trillion won, up 26% year-on-year.
Image Courtesy: Boeing