Finance
Finnair Picks Embraer Instead of Airbus for Its Narrow-Body Fleet Renewal
Published by Global Banking & Finance Review®
Posted on March 23, 2026
3 min readLast updated: March 23, 2026
Add as preferred source on GoogleQuick Summary
Finnair has selected 18 Embraer E195‑E2 jets for its European narrow‑body fleet renewal, stepping away from Airbus while also planning to source up to 12 used A320/A321s.
Finnair picks Embraer over Airbus for its narrow-body fleet renewal
Finnair's Strategic Fleet Renewal and Market Impact
By Anne Kauranen
Finnair's Major Investment in Embraer Aircraft
HELSINKI, March 23 (Reuters) - Finnair will renew its European fleet with an order for 18 E195-E2 narrow-body aircraft from Brazilian manufacturer Embraer, it said on Monday, as it moved away from its current supplier Airbus.
The order - the Finnish flag carrier's largest investment in over two decades - deals a further blow to France's Airbus, after Embraer's E2 outsold the Airbus A220 three to one last year. Finnair said it also plans to acquire up to 12 Airbus A320 or A321 from the used aircraft market.
CEO's Perspective on the Fleet Upgrade
"This is a highly versatile aircraft and one of the quietest on the market," Chief Executive Turkka Kuusisto told Reuters, referring to the E195-E2.
"It will reduce our CO2 emissions by 30% per passenger carried. In addition to enabling us to operate efficiently within Finland and widely across Europe, it also supports our climate objectives," he added.
Details of the Embraer Order and Financial Commitment
The Embraer order includes options for 16 additional aircraft and purchase rights for a further 12, Finnair said, adding it had signed deals with RTX's Pratt & Whitney for spare engines and maintenance services.
The total value of the company's planned investments through the end of 2029 will amount to around 2 billion euros ($2.31 billion), Kuusisto told Reuters, declining to share further details.
Market Trends and Embraer's Competitive Advantage
Embraer Capitalising on Global Short-Haul Fleet Renewals
EMBRAER CAPITALISING ON GLOBAL SHORT-HAUL FLEET RENEWALS
Finnair, which is majority-owned by the Finnish state, has navigated years of upheaval, first due to fallout from the COVID-19 pandemic and, since 2022, from the mutual airspace closures between Russia and EU countries following Russia's invasion of Ukraine.
Global Demand for Regional Jets
Embraer, which has a particular focus on mid-size aircraft, has benefited from a global boom in demand for regional jets as airlines catch up with fleet replacements put on hold during the pandemic, the planemaker's CEO Arjan Meijer told Reuters in January.
"We look forward to helping Finnair modernise its short-haul fleet to better match demand, reduce emissions, and unlock growth," Meijer said in a statement following Finnair's order.
Finnair's Current Fleet and Future Plans
Finnair last year said it urgently needed to replace 15 older models from its narrow-body fleet of 29 Airbus planes, adding that more new jets might be bought to meet growing demand.
Finnair's current narrow-body fleet includes 29 Airbus A319, A320 and A321 aircraft.
Its total fleet of around 80 aircraft consists of 26 wide-body Airbus A330s and A350s, 29 Airbus narrow-bodies of types A319, A320 and A321 of which Finnair had previously said 15 were up for renewal first. It also has a regional fleet of 12 ATR 72-500s and 12 Embraer 190s.
Additional Information
($1 = 0.8673 euros)
(Reporting by Anne Kauranen in Helsinki and Tim Hepher in Paris; Editing by Stine Jacobsen and Joe Bavier)
Key Takeaways
- •Finnair’s fleet renewal tackles aging 15 narrow‑body Airbus aircraft and upgrades sustainability, with E195‑E2 offering ~30 % lower CO₂ per passenger and industry‑leading quiet operations, powered by Pratt & Whitney GTF engines (simpleflying.com).
- •Embraer’s E‑Jet E2 program is gaining momentum: Embraer logged ~490 orders in the ≤150‑seat segment by Sept 2025, outpacing Airbus’s ~475 A220 orders, reflecting strong demand (aerospaceglobalnews.com).
- •The E195‑E2 provides significant cost advantages—~$22 M lower list price than A220‑300 and efficient regional performance—while A220 maintains advantages in range and cabin width, potentially informing Finnair’s mixed sourcing strategy (theflyingengineer.com)
References
Frequently Asked Questions about Finnair picks Embraer instead of Airbus for its narrow-body fleet renewal
1Why did Finnair choose Embraer over Airbus for its fleet renewal?
Finnair chose Embraer for its European fleet renewal due to the E195-E2's efficiency, lower emissions, and versatility compared to existing Airbus models.
2How many Embraer aircraft is Finnair ordering?
Finnair is ordering 18 E195-E2 narrow-body aircraft from Embraer, with options for 16 more and purchase rights for an additional 12.
3What environmental benefits does the Embraer E195-E2 offer?
The E195-E2 is one of the quietest on the market and will reduce CO₂ emissions by 30 percent per passenger carried for Finnair.
4Is Finnair completely replacing Airbus planes?
Finnair is moving away from new Airbus orders but will acquire up to 12 used Airbus A320 or A321 aircraft from the market.
5What challenges has Finnair faced in recent years?
Finnair has faced challenges from the COVID-19 pandemic and airspace closures due to the Russia-Ukraine conflict.
