Finnair announced on Monday that it will renew its European fleet with an order for 18 E195-E2 narrow-body aircraft from Brazilian manufacturer Embraer, signaling a strategic shift away from Airbus.

The order represents a significant setback for Airbus, as Embraer’s E2 jets outperformed the Airbus A220 last year with sales three times higher. Finnair also plans to acquire up to 12 used Airbus A320 or A321 aircraft to supplement its fleet.

“This is a highly versatile aircraft and one of the quietest on the market,” said Chief Executive Turkka Kuusisto. “It will reduce our CO₂ emissions by 30% per passenger carried. In addition to enabling us to operate efficiently within Finland and widely across Europe, it also supports our climate objectives.”

The deal includes options for 16 additional aircraft and purchase rights for another 12. Finnair has also signed agreements with RTX’s Pratt & Whitney for spare engines and maintenance services.

Majority-owned by the Finnish state, Finnair has faced years of disruption, first from the COVID-19 pandemic and, since 2022, from airspace closures following Russia’s invasion of Ukraine. The airline previously noted the urgent need to replace 15 older planes from its narrow-body fleet of 29 Airbus aircraft, and the Embraer order addresses this fleet renewal while preparing for growing demand.

Embraer has benefited from a global surge in demand for regional jets, as airlines accelerate fleet replacements delayed during the pandemic, according to CEO Arjan Meijer.