Korean Air, South Korea’s flagship carrier, has finalized a monumental $32.7 billion agreement with U.S. giants Boeing and GE Aerospace, marking a significant expansion of its fleet and a strengthening of U.S.-South Korea aerospace ties.

The deal, formalized on March 21, includes a $24.9 billion contract with Boeing for 40 wide-body aircraft—20 Boeing 777-9s and 20 Boeing 787-10s—set for delivery by 2033, with an option for 10 additional jets. Additionally, a $7.8 billion pact with GE Aerospace covers eight spare engines, with options for two more, plus maintenance services.

The agreements were celebrated at a pre-signing ceremony in Washington, D.C., attended by Korean Air Chairman Cho Won-tae, Boeing CEO Kelly Ortberg, GE Aerospace’s Russell Stokes, South Korea’s Industry Minister Ahn Duk-geun, and U.S. Commerce Secretary Howard Lutnick. South Korea’s industry ministry hailed the event as the first joint ministerial collaboration under President Trump’s second administration, signaling broader cooperation in aviation, semiconductors, and energy sectors.

This deal follows Korean Air’s $1.3 billion acquisition of Asiana Airlines in December 2024, positioning it among Asia’s top carriers. The new aircraft will bolster its long-haul capabilities, replacing older models and supporting a full merger with Asiana by 2027. The Boeing 777-9s and 787-10s, powered by GE engines, promise enhanced efficiency and range, aligning with Korean Air’s global ambitions.

Announced initially in July 2024, the agreements underscore Korean Air’s return to Boeing after a $13.7 billion Airbus A350 order in March 2024. Industry observers see this as a strategic move to modernize its fleet amid rising regional competition. With a sleek new livery unveiled last week, Korean Air is poised to redefine its stature in the aviation landscape.