Stock Markets March 23, 2026

Finnair Chooses Embraer E195-E2 Jets for European Narrow-Body Renewal

Finnish carrier orders 18 E2s, supplements fleet with up to 12 used A320/A321s and secures engine and maintenance agreements

By Sofia Navarro AIR RTX
Finnair Chooses Embraer E195-E2 Jets for European Narrow-Body Renewal
AIR RTX

Finnair has placed an order for 18 Embraer E195-E2 narrow-body aircraft to replenish its European short- to medium-haul fleet, marking a departure from Airbus as its primary narrow-body supplier. The deal includes options and purchase rights for additional aircraft and is supported by contracts with Pratt & Whitney for spare engines and maintenance services. The carrier says the E195-E2 will cut CO2 emissions per passenger by 30 percent and help it operate efficiently across Finland and Europe.

Key Points

  • Finnair has ordered 18 Embraer E195-E2 narrow-body aircraft, with options for 16 more and purchase rights for 12 additional jets.
  • The airline also intends to acquire up to 12 used Airbus A320 or A321 aircraft to augment its fleet.
  • Finnair signed deals with Pratt & Whitney, part of RTX, to provide spare engines and maintenance services; the carrier says the E195-E2 will reduce CO2 emissions per passenger by 30 percent.

Finnair announced it will refresh its European narrow-body fleet by ordering 18 Embraer E195-E2 aircraft, a move that shifts the airline away from Airbus as its main supplier for single-aisle jets.

The agreement includes options to acquire 16 more E195-E2s and purchase rights for another 12 aircraft. In addition, Finnair plans to obtain as many as 12 Airbus A320 or A321 airframes from the used aircraft market.

In a statement to Reuters, Chief Executive Turkka Kuusisto described the E195-E2 as "a highly versatile aircraft and one of the quietest on the market." He added that the type will decrease the airline's CO2 emissions by 30 percent per passenger carried and will support efficient operations both within Finland and across Europe while aligning with the carrier's climate objectives.

Finnair said it has also signed agreements with Pratt & Whitney, part of RTX, to secure spare engines and maintenance services for the Embraer jets.

The decision represents a setback for Airbus, following a broader trend last year in which Embraer's E2 family reportedly outsold the Airbus A220 by a three-to-one margin. Finnair, which is majority-owned by the Finnish state, has been managing operational challenges stemming from the COVID-19 pandemic and, since 2022, the closure of airspace between Russia and European Union countries following Russia's invasion of Ukraine.

Finnair had previously signaled an urgent need to replace 15 older aircraft from its narrow-body fleet of 29 Airbus planes and indicated that additional new jets could be procured to meet rising passenger demand.


Context and implications

The Embraer order expands the carrier's access to a regional jet platform that the airline expects will lower fuel burn and emissions intensity while supporting route flexibility across its intra-European network. The supplemental plan to acquire used A320 or A321 airframes provides a complementary path to capacity growth without relying solely on new-build deliveries.

Risks

  • Operational disruptions and market-facing challenges remain a factor - Finnair has been impacted by the COVID-19 pandemic and by airspace closures after the 2022 Russia-EU airspace restrictions.
  • Fleet transition execution risk - replacing older aircraft (15 of 29 narrow-body Airbus planes were identified for urgent replacement) requires timely deliveries and integration to meet demand without service disruption.
  • Manufacturer competition and order concentration - the move away from Airbus toward Embraer changes supplier exposure for Finnair and affects market dynamics for narrow-body aircraft purchasers and lessors.

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