Finnair Orders Embraer E2s, Adds Used A320s for Fleet Renewal

Finnair has initiated a significant narrowbody fleet renewal program, placing a substantial order for up to 46 Embraer 195-E2 (E195-E2) regional jets while also acquiring up to 12 used Airbus A320ceo family aircraft. This dual-track strategy is designed to modernize its regional operations with next-generation efficiency while pragmatically addressing near-term capacity needs amid persistent new aircraft delivery delays across the industry.

The core of the investment is the E195-E2 order, which consists of 18 firm orders, 16 options, and 12 purchase rights. This move represents one of the largest investments in Finnair's history and marks a major win for Embraer in the European market. The acquisition of older-variant Airbus A320 Current Engine Option (A320ceo) and A321ceo aircraft highlights a growing trend among airlines to use the second-hand market to bridge capacity gaps until new-production slots become available.

According to a Finnair press release, the first E195-E2 deliveries are scheduled to begin in the third quarter of 2027. The new aircraft will be operated by Finnair’s regional partner, Nordic Regional Airlines (Norra), replacing their current fleet of previous-generation Embraer E190s.

Fleet Modernization Details

The Embraer order was filed with the US Securities and Exchange Commission via a Form 6-K, officially adding the 18 firm orders to the manufacturer's first-quarter 2026 backlog. Finnair CEO Turkka Kuusisto described the deal as a cornerstone of the airline's strategy, stating it strengthens the European network and advances climate targets. The E195-E2 jets are powered by Pratt & Whitney PW1900G Geared Turbofan (GTF) engines, which are part of a family of engines from RTX Corporation.

Embraer Commercial Aviation CEO Arjan Meijer highlighted the aircraft's economic and environmental benefits. According to Embraer, the E195-E2 offers up to 35% better fuel efficiency per seat compared to the E190s they will replace in Finnair's fleet. This efficiency gain is partly driven by upgauging; Finnair's E195-E2s will feature a 134-seat configuration, a significant 34% increase over the 100-seat layout of its current E190s.

Christine Rovelli, Finnair's SVP of Strategy and Fleet, noted that while the Airbus A220 was considered a competitor for the order, the E195-E2 was ultimately selected as the best fit for the airline's network requirements. Rovelli also commented on the decision to acquire used A320ceos, stating that supply in the used aircraft market has loosened, making such tactical acquisitions viable to manage capacity until new aircraft deliveries, which are delayed into the 2030s, can be fulfilled.

Stakeholder and Industry Impact

This fleet decision has significant implications for several key stakeholders. For regional operator Norra, the transition to the larger E195-E2 represents a substantial capacity increase, allowing it to improve per-seat economics on its routes. For Embraer, securing a major European flag carrier reinforces the E2 program's competitive standing against the Airbus A220. The deal also benefits Pratt & Whitney, which secures a long-term maintenance and service contract for the GTF engines.

Conversely, the decision is a competitive loss for the Airbus A220 program. The move also benefits used aircraft lessors, who are finding renewed demand from top-tier carriers like Finnair for well-maintained, previous-generation narrowbodies.

Embraer E195-E2 vs Embraer E190

Technical Analysis

Finnair's strategy is emblematic of a broader industry pattern where legacy carriers navigate a supply-constrained environment. The decision to pair a long-term investment in new-generation technology (the E195-E2) with a short-term tactical acquisition of used, older-technology aircraft (A320ceos) reflects a pragmatic approach to fleet management. This follows a precedent set by other major carriers, such as the Lufthansa Group, which also turned to the used A320ceo market in 2023-2024 to mitigate delivery delays of new A320neo family jets. Similarly, KLM Cityhopper's renewal of its regional fleet with E195-E2s between 2019 and 2021 demonstrates the established trend of upgauging regional jets for better economics. Finnair's move accelerates this trajectory, confirming that even with a strong focus on sustainability, airlines must prioritize network integrity and capacity, sometimes by leasing less-efficient aircraft as a temporary bridge.

What Comes Next

According to timelines confirmed by Finnair and Embraer, the fleet renewal will unfold over the next several years. The induction of the used Airbus A320/A321ceo aircraft is expected to occur between 2026 and 2027. The first Embraer E195-E2 is confirmed for delivery in the third quarter of 2027, with the remainder of the initial 18 firm orders scheduled to arrive through 2028 and 2029. The execution of the 16 options and 12 purchase rights for additional E2s will depend on future market conditions and network growth.

Why This Matters

Finnair's split-fleet decision highlights a critical strategy for airlines managing the gap between ambitious long-term efficiency goals and immediate operational realities. It signals that the used aircraft market will remain a vital tool for maintaining capacity amidst manufacturing backlogs. For the industry, this move reinforces the competitive strength of upgauged regional jets like the E195-E2 in improving network economics and showcases the difficult balancing act carriers face between environmental targets and network stability.

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