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Icelandair to Lease Two Additional A321LR Aircraft from CALC

Icelandair Expands Fleet with Two Additional A321LR Aircraft from CALC
Icelandair has announced the lease of two additional Airbus A321LR aircraft from China Aircraft Leasing Group (CALC), marking a significant step in the airline’s ongoing fleet modernization efforts. The agreement, disclosed on September 12, 2025, initiates a new partnership between the Icelandic carrier and CALC as Icelandair continues to phase out its aging Boeing 757 fleet.
Fleet Modernization and Strategic Expansion
The two A321LRs are scheduled for delivery directly from Airbus during the winter season of 2026/2027. These aircraft will join Icelandair’s existing fleet of four A321LRs, further supporting the airline’s transition from its once extensive Boeing 757 fleet, which has been reduced from 37 to 11 aircraft. The A321LRs are intended not only to replace the older 757s but also to complement the Boeing 737 MAX 8s on key routes. Icelandair highlights the A321LR’s extended range, enhanced fuel efficiency, and lower emissions compared to the 757, aligning with the company’s sustainability objectives. Additionally, the aircraft’s Airbus Airspace cabin design is expected to improve passenger comfort.
“This marks the beginning of a new partnership between Icelandair and CALC, based on a shared vision and long-term collaboration,” the airline stated. CEO Bogi Nils Bogason emphasized that the addition of these two aircraft supports the company’s strategy to modernize its fleet with more efficient planes, while also enhancing the travel experience and strengthening the route network.
Market Dynamics and Industry Trends
The decision to lease additional A321LRs comes amid notable shifts in the aircraft leasing market. The recent $7.4 billion acquisition of Air Lease by a consortium including SMBC Aviation Capital has accelerated consolidation within the sector, potentially influencing lease terms and negotiation leverage for airlines such as Icelandair. As leasing companies expand, increased scrutiny over lease agreements and operational costs is expected, which may affect pricing structures and future fleet planning decisions.
Competitors are also adjusting their strategies in response to these market developments. Air Canada’s announcement of its first planned A321XLR route exemplifies a broader industry trend toward deploying longer-range narrowbody aircraft to open new transatlantic and North American routes. Icelandair’s use of the A321LRs similarly aims to increase capacity on European routes and support expansion into the United States and Canada.
Ongoing Fleet Development and Route Expansion
Icelandair’s relationship with Airbus began in April 2023 with a Memorandum of Understanding for the purchase of 13 A321XLR aircraft, along with purchase rights for an additional 12. Deliveries for these aircraft are expected to commence in 2029. In the meantime, the airline is leasing A321LRs to bridge the gap, including two aircraft from CDB Aviation scheduled for delivery in the second half of 2025. With the addition of the CALC-leased aircraft, Icelandair’s A321LR fleet will expand to six, enhancing operational flexibility and capacity across its network.
In a further indication of growth, Icelandair launched a new route between Iceland and Edinburgh, Scotland, on September 12, 2025. The service offers three to four weekly flights, adding the Scottish capital to the airline’s expanding list of destinations.

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