Icelandair has recently made a significant announcement, confirming the firm order of 13 Airbus A321XLR aircraft, just three months after signing a Memorandum of Understanding with Airbus. This decision marks a notable shift for Icelandair, which has been a longstanding customer of Boeing and has utilized their 757s to connect Europe and America through its hub at Keflavík.
With no suitable replacement from Boeing for the 757, Icelandair turned to the A321XLR to fulfill its operational needs, particularly on longer routes where the Boeing 737 MAX, their initial choice, fell short. Icelandair’s current fleet includes 14 Boeing 737 MAX 8 and 4 737 MAX 9, 12 757-200, 2 757-300, 5 767-300, and 6 DHC-8-200 aircraft.
Bogi Nils Bogason, CEO of Icelandair, expressed his satisfaction with the finalized purchase agreement with Airbus, highlighting the A321XLR’s efficiency and its potential to reinforce their business model, enhance flexibility, and contribute to future growth while supporting sustainability initiatives. The first aircraft from this order is expected to be delivered in 2029, but Icelandair plans to lease four A321LR aircraft from SMBC Aviation Capital Limited by the summer of 2025.
Christian Scherer, Commercial Director of Airbus, expressed gratitude to Icelandair for their trust and welcomed them as a new Airbus customer. He commended Icelandair for their sustainable growth plans and emphasized the A321XLR’s exceptional performance, efficiency, and significant reduction in CO2 emissions compared to previous generation aircraft like the 757.
The A321XLR, with a range of up to 4,700 nautical miles (8,704 km), provides a 15% increase in range compared to the A321LR, while consuming 30% less seat capacity than previous generation aircraft such as the 757.
Icelandair’s decision to choose the A321XLR as a replacement for their 757s stems from their specific operational requirements. The 757-200 aircraft are approaching the end of their useful life, and the A321XLR offers superior performance and range, particularly for longer-range missions to destinations on Icelandair’s network, such as the west coast of the United States (Seattle, Portland, Vancouver, Denver). By selecting the A321XLR, Icelandair aims to maintain smaller capacities provided by narrow-body aircraft, as they have proven successful in serving extended autonomy destinations, while also offering cost advantages over wide-body aircraft.
The strategic addition of the A321XLR to Icelandair’s fleet will enable the airline to explore new opportunities for growth in other long-range markets. The existing Boeing 767-300 aircraft will continue to serve core routes, especially those with significant cargo demand. The A320 family, consisting of the 737 MAX, A321, and 767-300, will serve different purposes and allow Icelandair to further develop its network in secondary North American markets that can be uniquely served from its Iceland hub using narrow-body aircraft.
Overall, the decision to choose Airbus and the A321XLR was driven by the aircraft’s extended range capabilities, competitive seat cost, lower trip cost compared to wide-body aircraft, and its suitability for serving smaller markets. Icelandair plans to leverage the A321XLR to continue its successful transatlantic operations and further expand its network.
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