Finnair Embraer E195-E2
A combination of factory-new Embraer E195-E2s and used Airbus A320/A321ceos: that is the solution Finnair has found to satisfy its requirements for partially renewing its regional and narrowbody fleet. Both solutions are interesting in their own way.
For a couple of years now, Finnair has been evaluating its options for replacing the older Airbus A320ceo family. Each day it pushed out a decision, the airline would be further back in the queue for new aircraft, as deliveries would slip into the early 2030s. But Finnair was also reluctant to buy new-generation narrowbodies, as their engine durability issues made them not as efficient as advertised.
Finnair opted to continue operating its almost entirely unencumbered A320ceo family fleet for as long as possible at low unit costs and maximum yields, while also evaluating new small narrowbodies. During the FY25 earnings presentation on February 11, CEO Turkka Kuusisto said that a decision was imminent. “Finnair is currently preparing a partial renewal of its narrow-body fleet. In addition, the company is considering adding used, smaller aircraft into its capacity in the near term.”
Embraer
Finnair has opted for the Embraer E195-E2 as the preferred aircraft for its regional subsidiary Nordic Regional Airlines (Norra). It has signed a firm contract for 18 aircraft, of which the first three will be delivered in 2027, six in 2028, six in 2029, and the remaining three later. The contract includes 16 options and 12 purchase rights, potentially bringing the E2-fleet to 46 aircraft. Finnair signed a separate contract with Pratt & Whitney for services and support, plus spare engines, of the PW1900G Geared Turbofan.
The E195-E2s will come with 134 seats, which means a significant upgauge from the 100 seats on the current 12 E190s that Norra has in service. Of these, nine are owned, and three are leased. Norra has been operating the E1s since 2015, but their average age is 17,8 years now as most have a history with Finnair and Norra’s predecessor, Flybe Nordic. Norra also operates 12 ATR 72s with an average age of 16,9 years.
“The Embraer E195-E2 is a great match for our needs, enabling a stronger regional network that both strengthens connectivity to and from Finland and efficiently feeds our long-haul network. Introduction of the new E195-E2 aircraft to our fleet also reduces our CO2 footprint, advancing our climate targets”, Kuusisto says in a media statement. He will share further details of the deals during a media call later on Monday.
After last July’s order from SAS for 45 E195-E2s plus 10 purchase rights, this is another important order for Embraer in the Nordic countries. CEO Commercial Aircraft, Arjan Meijer, said that “Embraer is honoured to support Finnair’s exciting new chapter. Finnair’s choice reinforces that superior efficiency, passenger comfort, and tangible sustainability gains are the critical drivers for modern, profitable airlines.”
Airbus
Instead of buying new aircraft, Finnair has opted for used Airbus A320ceos and A321ceos for the partial replacement of the mainline narrowbody fleet. The airline will source 12 aircraft over the next few years. The younger aircraft will replace the five A319ceos, with an average age of 24,8 years, plus the oldest A320ceos. Finnair operates 10 of them, with an average age of 23.7 years, with some over 25 years old, and only three aircraft younger than 23 years.
Finnair will carefully evaluate its options in the market, which explains why it doesn’t specify a delivery schedule. It will be looking at the most favourable lease terms and could decide to wait a little longer, as lease rates for the A320ceos remain high as long as the engine issues result in high numbers of grounded A320neo family aircraft.
“This mix of new and used aircraft supports our growth and profitability targets in an optimal way, as we continue to implement our strategy. A mix of larger and smaller narrow-bodies allows us to tap into the growth opportunities in our markets in a flexible and efficient manner”, Kuusisto said.
The airline also has a fleet of 14 A321ceos with an average age of 11.6 years. These aircraft have many years of life left in them. Two aircraft are leased, the remaining ones are owned and will continue to benefit Finnair, even as their fuel efficiency is lower, and fuel costs are higher compared to the neos.
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