International Consolidated Airlines Group SA (LSE:IAG) (IAG), the owner of British Airways, said it has ordered 50 aircraft from Boeing with options on a further 100.
According to a company statement, IAG has ordered 25 737-8200 aircraft and 25 737-10 aircraft, as well as 100 options.
The aircraft will be delivered between 2023 and 2027 and can be used by any airline in the group for fleet replacement.
"The addition of new Boeing 737s is an important part of IAG´s short-haul fleet renewal,” said chief executive Luis Gallego.
“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."
IAG said it has negotiated "a substantial discount" to the list price of US$120mln for the 737-8200 aircraft and US$130mln for the 737-10.