Replacing the Boeing 757 with new Airbus planes

Icelandair and Airbus have signed a letter of intent to purchase 13 Airbus A321XLR aircraft and a warrant for the purchase of twelve more.

An announcement from Icelandair says the machines will be delivered starting in 2029.
"Icelandair, however, expects to start operating Airbus aircraft in 2025 and contracts to lease four Airbus A321LR aircraft for delivery in 2025 are in the final stages, with additional Airbus aircraft expected to be in operation until 2029."

It also says the airline has been working on fleet renewal in recent years and these will replace the company's Boeing 757s permanently.

The notice states that the purchase price of the machines is confidential between the parties.
"Funding will be decided upon as delivery draws near, with a broad range of funding options to be considered."

8,700 km range

The new planes have a capacity of about 190 passengers, which compares with the company's Boeing 757s and 183 passengers.
“The Airbus A321XLR aircraft has a range of up to 8,700 km, which allows Icelandair to exploit the aircraft at more distant destinations in the current network as well as create opportunities to fly to new destinations. The Airbus A321LR aircraft has a range of up to 7,400 km, allowing Icelandair to use it in the current network.”

It also says that the Boeing 757, 767 and 737 MAX aircraft will still continue to play an important role in Icelandair’s operations in the years to come.

Until 2025, Icelandair will continue to operate a fleet of aircraft consisting solely of Boeing aircraft, but from the delivery of the first Airbus aircraft, the company will operate a hybrid fleet that will consist of both Airbus and Boeing aircraft.

The future fleet of Icelandair

“It is a pleasure to announce that we have now reached a decision on the future fleet of Icelandair. We have decided that Airbus A321LR and A321XLR will be the successors of the company’s Boeing 757 aircraft, which will be retiring from operations in the coming years. The Boeing 757, which has been serving the company since 1990 and has proved to be a vital part of Iceland’s development as a hub for aviation connectivity and our comprehensive network. The powerful Airbus engines will now take over. They will allow us to further develop the company’s business model in transatlantic flights while also providing opportunities to move into new and exciting markets,” stated Nils Bogason, CEO of Icelandair.

Signed last night

Bogi says the company has been in negotiations with both Airbus and Boeing for quite some time.
"We had two excellent options in front of us and the result is that we signed a warrant of understanding with Airbus last night."

He says the company sees great potential in the network, but the Airbus A321XLR aircraft has a range of up to 8,700 km.

Bogi says the first Airbus will be leased by the summer of 2025. They will then be operated alongside the Boeing 737 MAX planes.

Boeing remains an important partner

Icelandair has been in partnership with Boeing for a number of years, and Bogi says that this partnership is not being terminated.
"We are operating 34 Boeings in the summer on the international network and then we have a few more than 40, so it's over 40. It's absolutely clear that we have to run many Boeings over the next few years. So Boeing will be a very important partner going forward and now only Airbus will be added there," he says, adding that two Boeing 767s have just been launched. Boeing 737 MAX aircraft will be added by the summer.
It is now known that workers need training on the new Airbus, does that mean that there is a lot of work to be done?
“Yes, in several areas, training is available for employees. There is an exciting project ahead of us, and everyone is excited about that project,” concludes Bogi.