Icelandair has finalized an order for up to 25 Airbus A321XLR aircraft, converting the April 7, 2023 Memorandum of Understanding into a binding purchase agreement. The deal includes 13 firm A321XLR orders with purchase rights for up to 12 additional aircraft.
These new Airbus jets are intended to support Icelandair’s growth strategy, improve operational flexibility and advance the airline’s sustainability objectives. Deliveries of the A321XLR begin in 2029.
© Icelandair
“We are very pleased to announce that we have now finalized the purchase agreement with Airbus. The efficient A321XLR aircraft will further strengthen our business model, increase our flexibility and provide opportunities for future growth, as well as further support our sustainability efforts,” said Bogi Nils Bogason, president & CEO of Icelandair. He added that the first A321XLR is scheduled for delivery in 2029, while the airline expects to have four Airbus aircraft in service before the summer of 2025 through a secured lease of A321LRs with long‑term partner SMBC Aviation Capital Limited.
In addition to the XLR order, Icelandair and Airbus agreed on a lease for four new A321LR aircraft, with deliveries expected from Airbus in the fourth quarter of 2024. These A321LRs will enable Icelandair to expand route flexibility and support near‑term fleet modernization.
Christian Scherer, Chief Commercial Officer of Airbus and Head of Airbus International, welcomed Icelandair as a new Airbus customer: “We extend our heartfelt gratitude to Icelandair for placing their trust and confidence in Airbus. It fills us with immense pride to welcome Icelandair as a new Airbus customer. By harnessing the exceptional performance of the A321XLR, your airline is forging a path of sustainable growth with remarkable efficiency and a significant reduction in CO2 emissions.”
The A321XLR offers extended range and improved fuel efficiency compared with previous narrow‑body models, making it a popular choice for airlines seeking to open new long‑thin routes while reducing per‑seat emissions. For Icelandair, the combination of A321LRs entering service in 2024 and A321XLR deliveries beginning in 2029 supports a phased approach to fleet renewal and route development, balancing near‑term capacity needs with longer‑term strategic expansion and sustainability goals.
Overall, the finalized agreement with Airbus and the associated A321LR lease position Icelandair to pursue growth opportunities across the North Atlantic and beyond, increase operational flexibility, and continue reducing its environmental footprint through more efficient aircraft.