Korean Air commits $36.2 billion to acquire 103 aircraft from Boeing

Korean Air, the national flag carrier of South Korea, announced plans to invest $36.2 billion in the acquisition of 103 next-generation aircraft from Boeing. This monumental deal, which was revealed on August 26, 2025, includes the purchase of 95 passenger planes and eight freighter aircraft. The agreement, formalized through a memorandum of understanding between Korean Air and Boeing, will bolster Korean Air's already significant presence in the aviation sector, enhancing its fleet modernization strategy with a focus on fuel efficiency and passenger comfort. The deal will increase Korean Air's total orders with Boeing to 175 aircraft, as the airline currently operates 108 Boeing jets and has 72 additional planes on order. Among the newly ordered aircraft are 20 777-9s, 25 787-10s, and 50 737-10s, alongside eight 777-8F freighters. Deliveries of these new aircraft are expected to take place through the late 2030s, signifying a long-term partnership between the two companies. In conjunction with the aircraft purchase, Korean Air has disclosed plans to procure $690 million worth of spare engines from GE Aerospace and has also signed a substantial $13 billion contract for engine maintenance services with the same General Electric unit. This commitment to maintenance services underscores Korean Air's intention to ensure optimal performance and longevity of its aircraft fleet. The announcement comes at a crucial time as Korean Air aims to position itself as a leader in the competitive airline industry. The investment aligns with the company’s broader strategy to merge with Asiana Airlines, the second-largest airline in South Korea, which it acquired by securing a controlling stake. This acquisition not only expands Korean Air's service offerings but also paves the way for it to emerge as a more robust competitor in the airline market.