International Airlines Group (IAG) has reached an agreement with Boeing to order 50 737 Max jets.

The order includes 25 737 Max 8-200s and 25 737 Max 10 aircraft for delivery between 2023 and 2027, with the company stating that it had negotiated a substantial discount from the list price.

The parent company of British Airways, Aer Lingus, Iberia and Vueling says that the jets “can be used by any airline in the group for fleet replacement”.

The company has a further 100 purchase options as part of the deal.

This is a smaller version of the original commitment made by IAG at the 2019 Paris Air Show for 200 737 Max aircraft.

Luis Gallego, IAG´s chief executive, said:

“The addition of new Boeing 737s is an important part of IAG´s shorthaul fleet renewal. These latest generation aircraft are more fuel efficient than those they will replace and in line with our commitment to achieving net zero carbon emissions by 2050.”

Stan Deal, president and CEO of Boeing Commercial Airplanes, added:

“With the selection of the 737-8-200 and larger 737-10, IAG has invested in a sustainable and profitable future, as both variants will significantly lower operating costs and CO2 emissions.

“Today’s agreement for up to 150 airplanes, including 100 options, is a welcome addition of the 737 to IAG´s short-haul fleets and reflects our commitment to support the Group’s continued network recovery and future growth with Boeing’s unrivalled family of airplanes.”

The deal is subject to approval by IAG shareholders.

IAG recently announced its results for the first quarter of 2022, showing an operating loss of €731 million (£625 million).

However this compares favourably to the loss of €1.08 billion (£924 million) recorded in the same period of 2021, and the group said that “strong customer demand is expected to drive profitability from quarter two onwards”.