Finnair has launched its narrowbody fleet renewal with a firm order for 18 Embraer E195-E2 aircraft and plans to acquire up to 12 Airbus A320/321ceos from the used aircraft market. With this order, the airline said that it is strengthening its regional feed, replacing ageing narrowbodies and supporting its medium-term growth strategy.
The Embraer order also includes 16 options and 12 purchase rights, while RTX’s Pratt & Whitney will provide spare engines and maintenance services for the PW1900G GTF engines powering the aircraft.
Chief executive Turkka Kuusisto said the mix of new regional jets and used Airbus ceos was an “optimal solution” to balance growth and profitability, while supporting the strategy and financial targets outlined at Finnair’s November 2025 capital markets update.
The 134-seat E195-E2s will be operated by Finnair’s regional partner Norra, with deliveries beginning in the third quarter of 2027. Three aircraft are due in 2027, six in 2028 and six in 2029, with the remainder to follow thereafter. Finnair said the aircraft will be used to renew its regional fleet and strengthen feeder traffic into its long-haul network.
On an investor call, Kuusisto said the investment reflected the airline’s increased focus on the regional network in the current operating environment, arguing that a broader and more frequent regional operation would better support widebody services to Asia and North America. He added that the E195-E2’s range of up to 2,600 nautical miles would allow Finnair to serve markets such as Spain, Italy and the northern Mediterranean with the type.
The airline said that the planned acquisition of used A320/321ceos are intended to replace retiring A319s and A320s at mainline level over the next few years. Kuusisto described the used aircraft as a “perfect bridge solution”, noting that some of Finnair’s existing A319s and A320s are now more than 23 years old.
Chief revenue officer Christine Rovelli said on the call that the A321 fleet is not currently part of the replacement process, with the initial plan focused on renewing older A319s and A320s. She added that options and purchase rights on the Embraer order leave room for growth later, but said the current programme should be viewed first as a renewal investment.
Rovelli also said Finnair had opted for used ceos because new-generation narrowbodies are not available in the delivery windows it needs, with larger Airbus and Boeing narrowbody slots not aligning with the retirement timing of the carrier’s existing fleet. Finnair expects to begin bringing in the replacement Airbus aircraft from 2027, subject to market availability and negotiations.
Ahead of the Embraer deliveries, Finnair is also seeking interim regional capacity. Rovelli said the airline has already issued an RFP for used E1s and ATRs, with a view to inducting some of those aircraft from 2026. She said Finnair is currently looking for around four to six ATRs and Embraers.
Finnair said the E195-E2 was selected for efficiency, reliability and passenger comfort. The aircraft will feature a 2+2 layout, 29-30 inch seat pitch, reclining seats, USB charging at every seat, high-speed internet and a three-lavatory configuration. The airline said the type will deliver more than a 30% reduction in CO2 emissions per seat compared with the current E190-E1 fleet, as well as a lower external noise footprint.
Finnair management confirmed that the Pratt & Whitney agreement includes spare engines and maintenance support, and that the airline expects to receive the latest engine hardware available when the aircraft enter service. Asked about GTF reliability, Rovelli said the airline had held extensive discussions with Pratt & Whitney and was comfortable with the expected engine build standard by the time deliveries begin in the second half of 2027.
CFO Pia Aaltonen-Forsell said the airline’s balance sheet and cash flow position supported the investment. She said year-end leverage stood at 1.8x, within Finnair’s financial target range, and that the carrier continues to generate operating cash flow of around or above €500 million a year on a normalised basis. Around 10% of this year’s roughly €450 million CapEx guidance is now expected to go towards pre-delivery and signing-related payments tied to the programme.
Aaltonen-Forsell said the fleet plan remains within Finnair’s previously guided €2 billion to €2.5 billion investment range through 2029, likely towards the lower end, although the exact figure will depend in part on the eventual sourcing of the used Airbus aircraft. She also said Finnair would decide closer to delivery whether to own or lease aircraft, though she noted the airline sees value in keeping a significant portion of the fleet on balance sheet.
In response to a question on labour on the call, Kuusisto said that Finnair does not need further union negotiations to place the E2s at Norra, as the 2025 collective labour agreement with the Finnish pilots’ union already allows more jets to be operated on the platform.