Nordic airline Icelandair is planning to enter new markets after announcing a deal to buy up to 25 new Airbus A321XLR aircraft.

The carrier is planning to use the new aircraft to replace its existing fleet of Boeing 757s which are being “gradually retired”.

Icelandair has signed a memorandum of understanding with Airbus for 13 Airbus A321XLRs with purchase rights for another 12 aircraft. 

These new aircraft will begin arriving in 2029 but Icelandair also plans to lease four Airbus A321LRs to enter service in 2025 as it starts the switch from Boeing to Airbus aircraft. 

The Airbus A321XLR has a range of up to 8,700 kilometres which will allow Icelandair to operate longer flights and enter new markets that it cannot serve with the current fleet.

Bogi Nils Bogason, president and CEO of Icelandair, said: “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.”