Korean Air finalizes $32.7 billion deal for Boeing aircraft and GE engines

On March 25, 2025, Korean Air made a significant agreement involving a $32.7 billion purchase of Boeing aircraft and GE Aerospace engines, as announced by Commerce Secretary Howard Lutnick. The deal marks a significant stride for the South Korean airline as it aligns with its goals for fleet renewal and expansion, especially following its recent acquisition of Asiana Airlines. This agreement will enable Korean Air to procure 50 wide-body commercial aircraft, specifically 20 Boeing 777-9 and 20 Boeing 787-10 planes, slated for delivery by 2033. The financial breakdown of the agreement indicates that Korean Air will invest $24.9 billion for the aircraft and $7.8 billion for the associated engines and maintenance services provided by GE Aerospace. The strategic partnership demonstrates the confidence of international airlines in American-manufactured aircraft and underscores the important role of American manufacturing and technological innovation in the global aerospace market. Boeing President and Chief Executive Officer Kelly Ortberg emphasized this point, stating that the deal exemplifies the competitiveness of American exports. Furthermore, the collaboration is not just economically significant; it also aims to enhance the passenger experience through fleet modernization, which is crucial for Korean Air's vision of becoming a leading international airline. Walter Cho, chairman and CEO of Korean Air and Hanjin Group, highlighted the advanced technology that Boeing and GE Aerospace bring to the partnership, emphasizing its importance in executing the airline's ambitious growth strategy. The renewed fleet is expected to improve travel comfort and efficiency while also contributing to environmental sustainability through reduced carbon emissions. As the airline industry recovers and evolves post-pandemic, this investment positions Korean Air favorably in a competitive landscape. It reflects broader trends in the industry where airlines are increasingly focused on modernization and sustainability in their operations. With significant investments in fleet upgrades, Korean Air is set to navigate the challenges ahead while offering enhanced services to its passengers.