Icelandair and Airbus signed a memorandum of understanding for the purchase of 25 Airbus A321XLR aircraft on April 7 and the final purchase agreement has now been finalized. Icelandair made 13 A321XLR firm orders and has purchase rights for up to 12 additional aircraft. Deliveries will start in 2029. The agreed purchase price of the 13 aircraft is confidential. The financing of the aircraft is yet to be determined but the company will explore financing options closer to the delivery dates.

As previously announced, the company has been in advanced discussions with aircraft lessors regarding a lease of A321LR aircraft. The company has now finalized long-term lease agreements with SMBC Aviation Capital Limited, for four new A321LR aircraft, scheduled to be delivered from Airbus in the fourth quarter of 2024.

“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,” Bogi Nils Bogason, president and CEO of Icelandair, said. “The first aircraft is scheduled for delivery in 2029 but we plan to have four Airbus aircraft in operation before summer of 2025 and have now secured the lease of new A321LR aircraft with our long-term partner SMBC Aviation Capital Limited.”

“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,” Christian Scherer, chief commercial officer of Airbus and head of Airbus International, said. “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.”