Finnair Splits Fleet Bet: New E2s and Used A320ceos

UPDATE – A combination of factory-new Embraer E195-E2s and used Airbus A320/A321ceos is the solution Finnair has found to meet 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. That’s too late for some of the oldest aircraft in the fleet. But Finnair was also reluctant to buy new-generation narrowbodies, as their engine durability issues made them less efficient than advertised.

After a thorough review over the past 18 months, 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 HY2 of  2027, six in 2028, six in 2029, and the remaining three in 2030. The contract includes 16 options and 12 purchase rights, potentially bringing the E2-fleet to 46 aircraft. A decision on this will be made at a later stage. The airline doesn’t share details about the price it paid for the aircraft and the discount it got from Embraer.

Finnair signed a separate contract with Pratt & Whitney for services and support, as well as spare PW1900G Geared Turbofan engines. Finnair will get the latest version, which includes more durable high-pressure turbine blades.  This gives it confidence that the GTFs offer significantly better durability over the earlier versions.

The E195-E2s will have 134 seats with 29-30in pitch, a significant upgauge from the 100 seats on Norra’s current 12 E190s in service. Of these, nine are owned, and three are leased. Norra has been operating the E1s since 2015, but their average age is now 17.8 years, 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. Under a previous collective labour agreement, Norra was limited to operating 12 jet aircraft, but the 2025 CLA has expanded this to 18.

“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. Finnair had a look at the Airbus A220 with its longer range and higher seat capacity, “but at the end of the day, looking at those two aircraft, we really tought that the E2 was the best decision”, said Christine Rovelli, SVP of Strategy and Fleet.

During a media briefing later on Monday, Kuusisto added that the E2s enable Finnair to achieve its increased profitability targets and secure the competitiveness of its network thanks to the upgraded customer experience and longer range.  The E2s are capable of operating from Helsinki to the Iberian Peninsula and to Italy. Finnair and Norra plan to increase capacity by 4 per cent through 2029 and have already announced 14 new regional, short-haul, and long-haul routes, as well as additional frequencies for 2026.

CFO Pia Aaltonen-Forsell said during the briefing that Norra wishes to acquire four additional Embraer E1s and six ATRs for its regional fleet to bridge the period until all E2s have been delivered. A request for proposal has already been issued to get some aircraft in the fleet this year.

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 to acquire used Airbus A320ceos and A321ceos to partially replace its mainline narrowbody fleet. The airline will source 12 aircraft over the next few years, with the first set to join in 2027, but that depends on the market conditions. The younger aircraft will replace the five A319ceos, with an average age of 24.8 years, as well as the oldest A320ceos. Finnair operates 10 of them, with an average age of 23.7 years; some are over 25 years old, and only three are 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 while engine issues result in a high number of grounded A320neo family aircraft. Finnair could opt for “vintage” or older aircraft, or newer airframes, either leased or purchased, but this will be revealed in a request for proposal that will be issued imminently.  A factor here is how the available aircraft are configured.

“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. Two aircraft are leased; the remaining ones are owned and will continue to benefit Finnair, even though their fuel efficiency is lower and fuel costs are higher than those of the neos.

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Richard Schuurman

Richard Schuurman is a freelance aviation reporter since 2016 and covers commercial aviation and the aerospace industry. He has contributed before to AirInsight between 2018-2024.

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