IAG has announced that Vueling will take the 50 Boeing 737 Max jets the group has on firm order, marking the low-cost carrier’s – and group’s – shift away from an all-Airbus narrowbody fleet.
“We have allocated the 50 Boeing 737s that we have ordered to Vueling,” said IAG chief executive Luis Gallego during a second-quarter earnings call on 1 August.
The aircraft are due for delivery from late 2026, Gallego states. Three examples are expected by the end of that year and they will be based at Barcelona.
The intention is for Vueling to eventually become an all-Boeing operator, but that is contingent on the carrier performing to plan, Gallego says. In the meantime, it has plans to mitigate the inefficiencies that may result from it operating a mixed fleet.
IAG’s 737 Max order is split equally between 25 high-density Max 8-200s – the variant operated by Ryanair – and 25 Max 10s. The latter variant is still to be certificated, with reports suggesting that could happen later this year.
Vueling operates a fleet of around 140 Airbus narrowbodies, more than 100 of which are older-generation variants.
The decision is part of wider efforts for the group to “improve margins and returns in the medium term”, Gallego says.
IAG firmed an order for 50 Max jets in 2022 for “fleet replacement” purposes, following its shock move to place tentative commitments for 200 of the type during Paris air show in 2019, when the aircraft was grounded around the world following two fatal crashes.
Then-chief executive Willie Walsh said the group was keen to diversify its narrowbody fleet.
IAG continued its run of strong quarterly earnings in the April-June period, boosting its operating profit by 35% year on year to €1.7 billion ($1.9 billion), on revenue up 7% at €8.9 billion.
Its net profit of €1.1 billion was up 24%.
IAG highlights particularly strong demand for its premium cabins, which is offsetting some softness in economy-class demand.
