Broughton: Icelandair Signs deal with Airbus for 13 A321XLR Aircraft, Replacing Boeing 757 Fleet

Icelandair and Airbus have signed a Memorandum of Understanding (MoU) for the purchase of 13 Airbus A321XLR aircraft, with purchase rights for an additional 12.

The first deliveries are scheduled to begin in 2029. Icelandair also plans to start operating Airbus aircraft in 2025, leasing four A321LRs, as they are currently in advanced stage of negotiations.

The MoU marks the beginning of the end for the Boeing 757, a mainstay of Icelandair’s fleet since 1990. While the agreed purchase price of the 13 aircraft remains confidential, the company will explore financing options closer to the delivery dates.

The A321XLR and A321LR aircraft, both members of the Airbus A320neo Family, are renowned for their fuel efficiency, excellent range, and lower carbon emissions.

The aircraft’s design, unique features, and reduction in operating costs will support Icelandair’s sustainability targets and enhance the customer experience.

Wings for all A320 family jets are made at Airbus in Broughton.

Icelandair’s layout for the A321XLR and A321LR aircraft will accommodate approximately 190 passengers.

In comparison, the Boeing 757-200 aircraft has 183 seats, while the 737 MAX 8 and the 737 MAX 9 can carry 160 and 178 passengers, respectively.

With a range of up to 4,700 nautical miles (8,700 km), the A321XLR will enable Icelandair to operate on long-range destinations and potentially enter new markets.

The A321LR aircraft has a range of up to 4,000 nautical miles (7,400 km), allowing it to service the airline’s current route network.

Icelandair will continue to operate a full Boeing fleet, including the 757, 767, and 737 MAX aircraft, until 2025.

After the initial Airbus deliveries, the company will maintain a mixed fleet of both Airbus and Boeing aircraft.

Bogi Nils Bogason, President & CEO of Icelandair, expressed his enthusiasm for the deal, stating: “We are happy to announce that we have now reached a conclusion regarding Icelandair’s future fleet. We have decided that the capable and fuel-efficient Airbus aircraft, A321XLR and A321LR, will become the successors of the Boeing 757 we are gradually retiring. The excellent Airbus aircraft will not only allow us to further develop our proven business model around transatlantic flights but also open opportunities for future growth by entering new and exciting markets.”