The current generation of aircraft claims fuel efficiency and economic improvements of 15% or more in financial performance over the prior generation they replaced. Since being introduced in 2016 and 2017, the Airbus A320neo and Boeing 737 MAX 8 have enjoyed substantial market success. Economics is one key reason for that success, demonstrated through analysis of the Department of Transportation data collected monthly for US air carriers. In evaluating the performance of the current and prior generations of narrow-body aircraft, we utilized the US DOT Form 41 database that contains economic performance data for various aircraft, as well as the T2 database that contains operational statistics such as miles flown and average stage length. At the same time, an apples-to-apples comparison cannot be easily found in government datasets; a comparison of how each airline that operates both aircraft reports on the difference is about as close as one can see. Comparing operations with the same airline takes out differences in fuel costs, pilot wages, and maintenance policies that could bias an analysis. As a result, our data model on operating costs per aircraft model can provide helpful insights and eliminate potential differences in reporting between airlines. The A320neo versus the A320ceo While Boeing dominates the US fleet, Airbus has penetrated several US carriers. When comparing the A320ceo and A320neo, two carriers that operate both types are Spirit and Frontier. We examined the data for each carrier to obtain a cost per available seat mile and a cost per aircraft mile. The following chart shows the cost per ASM and the cost per aircraft mile for an aircraft type for all US operators from 2022 through the first quarter of 2025. As can be easily seen, the A320neo has a significant advantage over the A320ceo in economic performance. The average seat-mile cost for the A320neo was $0.0833 in the first quarter of 2025, compared with $0.1102 for the A320ceo, a difference of 24.4%. On an aircraft mile cost basis, the difference is $12.67 to $15.08, a difference of 16.0%. This represents a significant difference and economic advantage for the new model. Of course, by comparing data from two high-density carriers with network carrier layouts, and a difference in carriers flying each type, results can be skewed. The following chart illustrates seat-mile and aircraft-mile costs for the two US carriers operating both types of aircraft, providing an “apples-to-apples” comparison. Those two carriers are Spirit and Frontier, both of which have virtually identical high-density layouts. For this comparison, we created an average weighted by the number of flights conducted in the period for each carrier, represented by the size of the circle in the chart that follows. The A320ceo is shown in light blue and the A320neo in orange. Our comparison showed the A320neo to have a 16.0% reduction in seat-mile costs and a 15.7% reduction in aircraft-mile expenses over the A320ceo. That’s right in line with Airbus marketing estimates of a 15-16% improvement for the NEO over the CEO, so QED for their estimates. [caption id="attachment_105243" align="aligncenter" width="816"] Source: US DOT; AirInsight[/caption] The 737 MAX 8 versus the 737-800 The Boeing 737 MAX 8 is compared with its predecessor, the 737-800. Most carriers utilize the same seating configurations for both models, although the MAX 8 typically has smaller restrooms and additional capacity over the -800 in tighter pitch seating. But as they use the same fuselage and dimensions, many carriers, such as American, have converted their older models with new interiors to match the MAX in capacity. For the MAX and NG, there are a large number of US carriers operating the type. Data from all operators show that the MAX has a considerable advantage over the -800. During the first quarter of 2025, the MAX 8 for all carriers had a 25.1% advantage in seat-mile costs and a 22.5% advantage in aircraft-mile expenses over the -800. To provide a more apples-to-apples comparison, we focused on the four airlines that currently fly both types: Alaska, American, Southwest, and United. The following chart shows the difference in operating costs per seat mile and operating costs per aircraft mile between the 737-800, in light blue, and the 737 MAX 8 in dark blue. The size of the circle represents the size of the fleet for each of the four airlines. [caption id="attachment_105244" align="aligncenter" width="865"] Source: US DOT; AirInsight[/caption] The data show that, on an apples-to-apples basis, the advantage for the MAX in aircraft mile costs over its predecessor, the -800, ranged from 22.5% to 24.2%. Both the seat-mile and aircraft-mile improvements exceed the 15% estimates from Boeing, showing the aircraft’s efficiency. The Bottom Line Both the Airbus A320neo over the CEO and the MAX 8 over the -800 have double-digit benefits, with the MAX having about an 8% advantage over the A320. Much of this results from the higher capacity of the MAX over the A320neo, which is about 7-8% depending on configuration. The apples-to-apples comparison, in which an airline operates both types, eliminates potential biases in the data and shows relatively consistent results. The A320neo met its operational cost objectives, and the MAX 8 exceeded its expectations. Will this continue throughout the entire family? We will examine the A321neo against the MAX 9 in the near future and revisit the MAX 10 once it is certified and adequate operational data are generated. Please keep checking in at AirInsight for updates.