Korean Air confirms $44.8b Boeing order for 103 aircraft

Korean Air has finalized a massive purchase agreement to acquire 103 Boeing aircraft, with the total value reaching $44.8 billion when engine purchases and a long-term maintenance contract are included. The deal converts into a binding contract an investment and procurement plan the airline announced in Washington, D.C., last year, roughly a year after that announcement.

Korean Air said Wednesday it had concluded a $36.2 billion agreement with Boeing covering 103 aircraft. The airline also signed separate deals with GE Aerospace and CFM International worth approximately $8.6 billion for spare engine purchases and engine maintenance services.

The new aircraft span a wide range of categories, from long-haul widebodies to short-haul narrowbodies and freighters. The order covers 20 777-9s, 25 787-10s, 50 737-10s and eight 777-8F freighters.

The 777-9 and 787-10 are large widebody jets suited for long-haul international routes, while the 737-10 is a narrowbody designed for medium- and short-haul operations. The 777-8F is Boeing's next-generation freighter, which Korean Air plans to use as it replaces its aging cargo fleet.

Alongside the aircraft order, Korean Air will add 21 spare engines from GE Aerospace and CFM. The airline also signed a 15-year maintenance service agreement with GE Aerospace covering engines installed on 28 of the aircraft.

Korean Air held a signing ceremony Tuesday afternoon at Conrad Seoul hotel in Yeongdeungpo-gu, Seoul. Hanjin Group Chairman Cho Won-tae attended alongside Stephanie Pope, president and CEO of Boeing Commercial Airplanes, and Gael Meheust, president and CEO of CFM.

Industry Minister Kim Jung-kwan, US Ambassador to South Korea Michelle Steel, James Kim, chairman and CEO of the American Chamber of Commerce in Korea, and Hwang Ki-yeon, president of the Export-Import Bank of Korea, also attended.

"It is deeply meaningful to see the commitment made in Washington last year come to fruition as a final contract," Cho said. "This agreement goes beyond a simple business transaction — it is a milestone of trust that further strengthens the solid economic and technological alliance between South Korea and the United States."

He added that "if Boeing is the wings of Korean Air, GE Aerospace has served as the heart of our fleet," and pledged that the airline would "continue to provide the highest levels of safety and service and serve as a bridge connecting the two countries' exchanges and economic development, building on our longstanding partnerships with Boeing, GE Aerospace and CFM."

The large-scale order is closely tied to Korean Air's fleet strategy following its merger with Asiana Airlines, which is set to officially launch as a combined carrier on Dec. 17. With the two airlines' aircraft and routes coming under a single operating structure, the merged entity will need to simplify its fleet types over the long term and replace older jets with newer models.

Korean Air is also pressing ahead with merger preparations on other fronts. On Tuesday, the Korea Fair Trade Commission gave final approval to the plan for integrating the two airlines' mileage programs. Starting in November, Asiana Airlines reservation and ticketing information for flights departing after Dec. 17 will be migrated in stages to Korean Air's systems.

The intensifying competition for aircraft also factored into the timing of the deal. Travel demand has rebounded sharply since the COVID-19 pandemic, but production disruptions at major manufacturers including Boeing and Airbus have stretched delivery lead times. Korean Air decided to place orders well in advance to reduce the risk of supply delays.

The new aircraft also offer lower fuel consumption and carbon emissions compared with existing jets. Korean Air plans to introduce the 777-9, 787-10 and other next-generation models in stages to improve operating efficiency on long-haul routes while gradually retiring older aircraft.

The government and state-backed financial institutions played a role in the deal. The Export-Import Bank of Korea and other institutions have been reviewing and coordinating financing support for the large-scale purchase. Individual aircraft can cost hundreds of billions of won apiece, and deliveries are spread over multiple years, making long-term funding arrangements critical.

The agreement also deepens Korean Air's ties with Boeing, a relationship spanning decades during which the airline has operated Boeing passenger jets and freighters and relied on GE Aerospace and CFM engines across its main fleet.

"The fact that the MOU signed in Washington last year has led to a final contract was made possible by the unwavering trust and cooperation of the governments, financial institutions and partners of both South Korea and the United States," a Korean Air official said. "Korean Air will continue to strengthen its future competitiveness through the introduction of next-generation aircraft and collaboration with global partners, and will contribute to promoting exchanges and economic cooperation between the two countries."