Boeing's Secret Pricing: How Much Do Airlines Really Pay for Planes?

Airline manufacturers sell their aircraft like car dealerships sell cars, but the prices are often shrouded in mystery. Boeing's list price for a 787-10 is $338.4 million, but British Airways' parent company IAG revealed that this includes concessions and discounts, with the actual cost to the airline estimated at around $170 million per plane.

When airlines order new aircraft, they often announce a multi-billion dollar deal, but these figures are not always reflective of the real price. A useful rule of thumb is to cut the announced value in half, as seen in Iran Air's 80-aircraft Boeing contract, which was valued at $16.6 billion but actually cost around 50% of that amount.

Actual prices can vary widely depending on factors such as order size, timing, and aircraft type. For example, Biman's 787-8s in 2008 were priced at around 80% of the list price, while Hawaiian's 787-9s in 2018 were valued at around 53% of list.

Boeing sales reps use list prices as a negotiating baseline, and airlines often configure planes with options and extras to drive up costs. Confidential prices allow manufacturers to discriminate among customers, and airlines prefer not to disclose their actual prices to competitors or the public.