Airlines have long struggled with how they will replace their aging fleet of Boeing 757 aircraft. Historically, there have yet to be any modern successors to the 757 that can match its full range, versatility, and overall reliability. Recently, various airlines have opted for Airbus' A321neo family of aircraft as proper 757 replacements, along with the Boeing 737 MAX in certain cases. Icelandair, a long-time operator of the Boeing 757, has signaled the imminent end of its Boeing 757s as it recently confirmed a lease for two Airbus A321neo jets.

Icelandair's Modernization

Icelandair and leasing company CDB Aviation recently announced a lease for two A321neo LRs. These aircraft are expected to join the fleet in the second half of 2025, bringing Icelandair's order book for this aircraft type to seven examples. This event follows the recent additions of Boeing 737 MAX 8 and 9 jets. As the Icelandic flag carrier continued its modernization and fleet expansion, many expected it to expand its order book of 737 MAXs. 

Therefore, it was a surprise when the airline ordered 13 Airbus A321XLR jets with options for 12 more in July 2023. It is no secret that Boeing has been losing the trust of many once-loyal customers. The company's once-engineering-heavy culture is long gone, reflected in an increasing number of delays and aircraft issues. As such, many airlines have opted to switch over to Airbus to modernize their fleets.

Icelandair's current 757 fleet consists of 14 Boeing 757-200s, five of which are "parked" and inactive due to maintenance or retirement preparation. There are two 757-300s, both of which are active. Icelandair also operates three 767-300ERs. The 757s comprise the bulk of Icelandair's trans-Atlantic operations and help significantly with intra-Europe services. The A321XLRs, once deliveries begin in 2029, are said to replace the 757s only. However, the 767s are also aging quickly, so these might also be on the chopping block once newer planes arrive.

Bogi Nils Bogason, Icelandair's President and CEO, said the following about his airline's modernization:

"We continue our fleet renewal and are very pleased to announce the lease of two new aircraft from CDB Aviation, expanding our business relationship with the company. We have already started entry into service preparation for these efficient aircraft that will replace our Boeing 757s. They will provide exciting opportunities and possibilities to explore new destinations as well as further support our sustainability efforts."

Icelandair's Future

The seven A321neo LR jets will serve as a stopgap measure as Icelandair retires older 757s. Since the A321XLRs the airline ordered are not expected for delivery until 2029, having some newer planes on hand earlier will help speed up the modernization process. The airline's mainline fleet will consist of Boeing 737 MAX (8 and 9) and Airbus A321neo aircraft. 

Icelandair currently has 18 MAX jets in service, consisting of 14 MAX 8s and four larger MAX 9s. It has just two more MAX 8s on order. Icelandair also has a small fleet of Bombardier (formerly DeHavilland) Dash 8 Q200 and Q400 turboprop aircraft, with three and two examples in the fleet, respectively. These are used on domestic trips and have not been discussed in replacement plans.

The A321XLRs and leased A321neo LRs will be equipped with state-of-the-art Panasonic Astrova inflight entertainment screens across all classes of service. These will be 4K OLED screens with 16-inch monitors in Business Class and 13-inch in Economy. Icelandair has not specified the configuration of its new Airbus planes. However, passengers are sure to have a modern and relaxing experience once these new jets enter service within the coming years.