Korean Air Orders $50 Billion in Boeing Planes and GE Engines

On June 27, 2024, an organized media tour showcased Korean Airlines’ Airbus A220-300 planes and a Boeing 737-8 plane of Jin Air, a low-cost airline and Korean Airlines subsidiary, at its Maintenance Hangar in Seoul.

Korean Air revealed a substantial $50 billion order on Monday, coinciding with the visit of South Korean President Lee Jae Myung to Washington. This historic order encompasses 103 Boeing airplanes and GE Aerospace engines, along with servicing agreements. The aircraft order, valued at approximately $36.5 billion, includes a combination of 787s, 777s, and 737 models.

Simultaneously, Korean Air announced a separate deal with GE for the purchase and maintenance of engines, valued at $13.7 billion. This significant deal is part of a trend of major Boeing orders announced by countries negotiating trade agreements.

According to Korean Air CEO Cho Won-tae, the record-breaking order will facilitate the airline's expansion to more destinations in the U.S., Latin America, and South America. The order includes a significant number of 737 MAX 10 planes, along with 777-9 and 787 airplanes. The majority of the new Boeing planes will replace existing aircraft in the fleet.

The Boeing deal is valued at $36.2 billion, according to South Korea’s industry ministry. Boeing stated that the deal would aid in the full integration of operations with Asiana Airlines, which Korean Air acquired last year. Boeing's president and CEO of Commercial Airplanes, Stephanie Pope, emphasized the company's commitment to supporting Korean Air's growth. Commerce Secretary Howard Lutnick highlighted the deal's potential to boost U.S. aerospace exports.

In March, South Korea’s industry ministry had previously announced that Korean Air would soon finalize a $32.7 billion deal for new Boeing and GE engines. The new order is separate from a previous order for 20 777-9 and 20 787-10 planes from Boeing, with options for an additional 10 aircraft. Korean Air, a founding member of the SkyTeam airline alliance, was established in 1969.