Korean Air has sealed a landmark agreement with US aviation giant Boeing to purchase 103 aircraft in a deal worth approximately $36 billion (£24 billion). Announced on Monday, the order includes a mix of Boeing 787 Dreamliners, 777 long-haul jets, and 737 single-aisle planes, marking one of the airline’s largest-ever fleet expansions. Korean Air’s Chairman, Walter Cho, described the acquisition as arriving at a “pivotal moment,” as the flag carrier prepares for its merger with Asiana Airlines and seeks to modernise its fleet to remain competitive on the global stage.
The deal was unveiled shortly after South Korean President Lee Jae Myung met with US President Donald Trump in Washington to address mounting trade tensions, including the 15% tariffs imposed by the US on South Korean goods in July. The announcement took place during a high-profile meeting between government officials and business leaders from both countries, attended by US Commerce Secretary Howard Lutnick and South Korea’s Trade Minister Kim Jung-kwan. Executives from Samsung, Hyundai Motor Group, and Nvidia CEO Jensen Huang were also present as both governments sought to showcase deepening economic ties.
Alongside the aircraft purchase, other agreements were revealed, including a $13.7 billion deal with GE Aerospace for jet engines and a partnership between Samsung’s shipbuilding division and Oregon-based Vigor Marine Group to support US Navy maintenance operations. Seoul also reiterated its earlier pledge of $150 billion in support of the US shipbuilding sector. Hyundai, meanwhile, announced an increase in its US investment from $21 billion to $26 billion, with plans to build a new facility capable of producing 30,000 industrial robots annually.
Boeing hailed the Korean Air order as a major boost, with Stephanie Pope, head of Boeing Commercial Airplanes, calling it a “landmark agreement.” The package will see the airline take delivery of 50 Boeing 737-10 passenger jets, 45 long-range aircraft, and eight 777-8 Freighter cargo planes. Boeing said the deal would help sustain around 135,000 jobs across the United States, reinforcing the company’s role as a key exporter amid Trump’s push for trading partners to favour American firms. This year alone, Korean Air has placed more than 150 aircraft orders and commitments with Boeing.
The agreement follows a pattern of major Boeing purchases tied to US trade negotiations. In recent months, Japan committed to buying 100 Boeing planes, while Indonesia’s Garuda agreed to purchase 50 jets as part of broader tariff reduction deals. These moves have bolstered Boeing’s sales at a time when the company is still recovering from a string of crises, including two fatal crashes in 2018 and 2019 involving its 737 Max aircraft, a dramatic mid-air panel blowout in 2024, and an eight-week worker strike that disrupted production. The Korean Air deal underscores the strategic role of aviation contracts in global trade diplomacy and the enduring competition between Boeing and its European rival Airbus.
