For the first time ever, Icelandair has placed an aircraft order with Airbus. While a memorandum of understanding for this order was signed back in April 2023, it has now been finalized, so we have more details about what we can expect.
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Icelandair’s Airbus aircraft order
Icelandair has placed a firm order for 13 Airbus A321XLRs, though the catch is that deliveries will only start in 2029, so this order is still quite a ways off. Icelandair has plans to add Airbus aircraft to its fleet sooner, as the airline intends to lease four Airbus A321LRs, and start flying them in 2025.
For context, the Airbus A320neo family is a competitor to Boeing’s 737 MAX product. The Airbus A321 is the largest variant of that family of aircraft, and we’re seeing some impressive incremental performance for new variants of the aircraft. The A321XLR has the range to fly up to 4,700 nautical miles (8,700km), while the A321LR has the range to fly up to 4,000 nautical miles (7,400km).
These aircraft will not only allow Icelandair to operate all of its current route network, but will also allow the airline to enter new markets. Icelandair states that all these aircraft will have around 190 seats. For context, below is a map showing what’s within 4,700 nautical miles of Iceland (of course an aircraft can’t quite fly to that range, given the need to account for winds, fuel reserves, etc.).
Here’s how Icelandair’s CEO, Bogi Nils Bogason, describes this order:
“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 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.”
What this means for Icelandair’s future fleet
For context on Icelandair’s fleet, the airline has 38 jets, which operate its network to North America and Europe. This includes:
- 16 Boeing 737 MAXs, including 12 737 MAX 8s and four 737 MAX 9s; there are four additional 737 MAX 8s on order
- 19 Boeing 757s, including 17 757-200s and two 757-300s
- Three Boeing 767-300ERs
With the acquisition of Airbus aircraft, Icelandair plans to completely replace its Boeing 757 fleet. At some point in the future we can expect that the airline will exclusively fly Boeing 737 MAXs and Airbus A321XLRs (admittedly this will only be in 2030 and beyond).
My take on Icelandair’s order with Airbus
Icelandair has had an all-Boeing jet fleet for decades, so it’s interesting to see the airline finally placing an aircraft order with Airbus. On the one hand, there would have been efficiency from eventually having an all-Boeing 737 MAX fleet, but this also highlights how Boeing can’t compete with Airbus in the long range narrow body market.
For example, Icelandair used to fly from Reykjavik (KEF) to San Francisco (SFO), which covers a distance of 3,653 nautical miles. This was discontinued around the start of the pandemic, and probably hasn’t been operated due to lack of aircraft able to operate this service. That’s a route that’s well within range for the A321XLR (by a large margin), while it’s not a mission the 737 MAX could operate. The 737 MAX 8 has a range of 3,550 nautical miles.
For some airlines, the range difference between variants of the 737 MAX and A321neo might not matter, while for Icelandair it makes a big difference.
I had one other thought when I saw this order. Icelandair has been very consistent when it comes to its premium seating option, as Icelandair’s Saga Class (business class) most closely resembles domestic first class within the United States, and doesn’t have flat beds.
Given the range of the A321XLR, I can’t help but wonder if the airline might finally install flat beds on these planes, as they’ll operate some longer routes. It sure would be nice, though in terms of Icelandair’s business model (low pricing and consistency), I think it’s unlikely. Icelandair also suggests these planes will have around 190 seats, which represents a pretty dense configuration that doesn’t leave much room for flat beds.
With these planes only being delivered in 2029, admittedly we could see a strategy shift between now and then.
Bottom line
Icelandair plans to acquire Airbus jets for the first time. The airline has placed a firm order for 13 A321XLRs, due to be delivered starting in 2029. The airline also has plans to lease four A321LRs, which will join the carrier’s fleet in 2025.
It’s pretty interesting to see Icelandair place a non-Boeing order for the first time in decades. However, the reality is that there’s only one modern narrow body jet that can operate Icelandair’s entire route network, and it’s not the 737 MAX.
What do you make of Icelandair’s Airbus aircraft order?
Consider the average flight time of their flights and the pricing about not having flat beds. It can sometimes be an economical way to get to Europe and reasonable place to transfer.
It would have made more business and economic sense to have an all Airbus A320' series fleet. I have no idea why they bothered ordering those Boeing 737 Max's, especially as it is an inferior and less safe short-haul plane. From a passenger perspective it would also provided a more consistent passenger environment.
While I'd love to see them have a lay flat seat in business, I can see it not making sense considering their network. Their flights from NA to KEF are overnight but the rest of their network, served by the same planes, are day flights and many much shorter. For most flights, a domestic first-class seat probably works just fine for the amount of premium traffic they can command. Maybe a sub-fleet of aircraft would...
While I'd love to see them have a lay flat seat in business, I can see it not making sense considering their network. Their flights from NA to KEF are overnight but the rest of their network, served by the same planes, are day flights and many much shorter. For most flights, a domestic first-class seat probably works just fine for the amount of premium traffic they can command. Maybe a sub-fleet of aircraft would make sense, but some of the more premium markets (I assume) are also some of the shorter routes.
Icelandair ordering the A321XLR is proof, if ever it was needed, that Boeing desperately needs to start designing a New Midsize Aircraft. The A321neo is dominating this increasingly popular market and Boeing isn’t even trying to compete and instead is focusing on short-term profits, which is sad to see.
Nothing against the A321neo/LR/XLR-it’s a good plane from what I can tell, and as an Avgeek I find the routes it’s opening up interesting. It’s...
Icelandair ordering the A321XLR is proof, if ever it was needed, that Boeing desperately needs to start designing a New Midsize Aircraft. The A321neo is dominating this increasingly popular market and Boeing isn’t even trying to compete and instead is focusing on short-term profits, which is sad to see.
Nothing against the A321neo/LR/XLR-it’s a good plane from what I can tell, and as an Avgeek I find the routes it’s opening up interesting. It’s just unfortunate to see Boeing giving up on making good planes and practically giving Airbus a monopoly.
Another airline that only shows loyalty to American products when it suits. These European airlines make me very angry. I would never use them when they ignore American designed and engineered products in favor of expensive with huge waiting list Europeans.
Are you like 12-yrs-old or something?
Corporations aren't teenage girls in a clique, they're businesses who serve the interests of their shareholders. They have no reason to be "loyal" to a manufacturer who doesn't produce a product capable of doing what their business model needs.
Do you ever comment on anything else? We get it; airlines should be punished if they don’t exclusively buy from Boeing regardless of their needs.
Would Airbus please make the A321 L2 boarding door accessible please. It’s annoying and difficult boarding from Door 1 with an elite cabin. One thing I will
Miss from the 757.
Um, you do realize that A321s have been capable of L2 boarding at gate or remote, since the day they were certified, do you not?
Lufthansa even L1+L2 boards at its gates, and I've seen plenty of other airlines do it for remote-parked A321s.
https://imagizer.imageshack.com/a/img593/7301/fwji.jpg
IF Icelandair installs lie flat on their new 321's they have one new customer. Jetblue has made it happen, why not Icelandair.
Not to pick nits, but didn't La Compagnie put lie-flat seats on A321s before JetBlue? Agreed with your general point in any case.
If they have 190 seats it's gonna be hard to have lie flat, unless they do something like EI or TP and only have 4 rows of business
Icelandair's 767s have less than a decade of life left in them - maybe less. The advantage of keeping the 767 for them is that they operate several as freighters.
The 757 and 767 have enough commonality that a small operator will lose benefits of having both and costs will go up.
The A321XLR will have the range to cover much of what the passenger 767s do for them but without having the...
Icelandair's 767s have less than a decade of life left in them - maybe less. The advantage of keeping the 767 for them is that they operate several as freighters.
The 757 and 767 have enough commonality that a small operator will lose benefits of having both and costs will go up.
The A321XLR will have the range to cover much of what the passenger 767s do for them but without having the excess capacity in the off-peak periods.
Also keep in mind that their configuration of the A321XLRs will not yield near the range of other carriers that will use them with far fewer seats including a business class cabin.
A lot can happen in 6-7 years.
A return to SFO! (in 6+ years)
Yeah, those could have been 757MAX jets but Boeing was too busy counting beans, ignoring engineers and kissing Wall $treet butts. Now they are falling farther and farther behind Airbus.
Still, kudos to Icelandair for their continued committment to improvement.
A 757 MAX wouldn't have made sense with the 737MAX too, they should've done a 767MAX, but now it's too late. It would require a new engine but Rolls, GE or P&W would've would've have done it if they had a exclusive contract. With the 767 production line still working it would've been easy and they could've produced it for a solid 15 years. Now, it's too late as Boeing next aircraft will be larger...
A 757 MAX wouldn't have made sense with the 737MAX too, they should've done a 767MAX, but now it's too late. It would require a new engine but Rolls, GE or P&W would've would've have done it if they had a exclusive contract. With the 767 production line still working it would've been easy and they could've produced it for a solid 15 years. Now, it's too late as Boeing next aircraft will be larger than the 737 and with its anticipated huge jump in efficiency it would make a 767MAX obsolete. Argyebly if they Satrted in 2017/18 with a EIS of 2021-23 they would've had a winner on their hands.
"those could have been 757MAX jets but Boeing was too busy counting beans,"
This again?
How many times must it be stated, that Boeing spent THREE YEARS after 9/11 trying to find a (mix or even a single) airline to get a grand total of only thirty 757s, produced at twice a month, to stretch out its development to a time frame where an "NG" 757 could be produced. And yet, they got a grand...
"those could have been 757MAX jets but Boeing was too busy counting beans,"
This again?
How many times must it be stated, that Boeing spent THREE YEARS after 9/11 trying to find a (mix or even a single) airline to get a grand total of only thirty 757s, produced at twice a month, to stretch out its development to a time frame where an "NG" 757 could be produced. And yet, they got a grand total of SEVEN.
If airlines had wanted there to be a 757NG, MAX, or whatever, there would've been one. Boeing offered it. They said no. Why do so many people refuse to acknowledge that fact, and just let it go?
I think that Boeing was right to cease production of the 757 in 2004 due to a lack of demand, but nowadays there’s no excuse for them not to build a 757-style mid-market plane. The A321neo’s popularity clearly shows that there’s demand for this market, and from my armchair perspective, I think that Boeing should get their act together and design a proper competitor.
I agree that Boeing was right to cease production of the 757 in 2004 due to a lack of demand, but nowadays there’s no excuse for them not to build a 757-style mid-market plane. The A321neo’s popularity clearly shows that there’s demand for this market, and from my armchair perspective, I think that Boeing should get their act together and design a proper competitor.
A lot of you are confusing your fantasies with market requirements.
What airline is demanding that from Boeing? Name them.
Because the reality is that the ones who needed a 10hr narrowbody, went to Airbus. The ones who didn't, are just as content to buy a MAX or plain -NEO.
There's no airline/airlines holding out for some mythical 757 evolution, sufficient to cover the multi-billion cost of developing one--- no matter how many amateurs wish that to be so.