Icelandair and Airbus signed a memorandum of understanding for the purchase of 25 Airbus A321XLR aircraft. The aircraft deliveries will start in 2029. Icelandair is expected to start operating Airbus aircraft in 2025 and is currently in an advanced stage of negotiations in relation to four leased Airbus A321LR for that purpose. Further additions can be expected in the years thereafter. With the acquisition of the Airbus aircraft, Icelandair will complete its replacement of Boeing 757 aircraft.

The agreed purchase price of the 13 aircraft is confidential. The financing of the aircraft is yet to be determined, but Icelandair will explore financing options closer to the delivery dates.

“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,” Bogi Nils Bogason, president and CEO of Icelandair, said. “The Boeing 757 has been the cornerstone of Icelandair’s operations since 1990. Its unique capabilities have underpinned the successful development of our extensive route network and competitive transatlantic hub by leveraging Iceland’s unique geographical location to connect North America and Europe via Iceland. 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.”