Airbus A220-300's Price Premium Over Embraer E195-E2
Market data shows the Airbus A220-300 carries only a slight premium over the Embraer E195-E2, contradicting online comparisons based on misleading list
The Airbus A220-300 commands a market price only about 5% higher than the Embraer E195-E2, not the 30% premium often cited online. According to market intelligence firm IBA, the actual market value for a new A220-300 was just above $40 million as of January 2025, while the E195-E2 was valued at around $38 million.
Online comparisons frequently misuse manufacturer list prices, which are starting points for negotiation and not what airlines pay. The source report from Simple Flying explains that list prices are marketing figures, akin to a holiday package advertised at a 'value' far above its actual cost.
Aircraft Specifications and Order Books
The Airbus A220-300, developed originally by Bombardier, typically seats 125 to 160 passengers and has a range of approximately 3,400 nautical miles. Airbus advertises a 25% lower operating cost per seat compared to previous-generation aircraft. The Embraer E195-E2, which entered service in 2019, is typically configured for 120 to 146 passengers and has a maximum range of about 3,000 nautical miles. Embraer claims it offers 29% better fuel efficiency per seat than older models.
| Aircraft Model | Typical Seats | Range (Nautical Miles) | Key Efficiency Claim |
|---|---|---|---|
| Airbus A220-300 | 125-160 | ~3,400 | 25% lower operating cost per seat |
| Embraer E195-E2 | 120-146 | ~3,000 | 29% better fuel efficiency per seat |
The A220 family has a significantly larger order book. It has attracted 1,106 total orders, with 574 aircraft remaining in the backlog as of the report. In contrast, cumulative orders for the E195-E2 total 464 units.
Market Values and Lease Rates
IBA's data indicates the market values for the two aircraft are closely aligned. The firm reported in April 2025 that the A220-300's market value was just above $40 million, having risen 12.6% since January 2021. The E195-E2 was valued at approximately $38 million.
Lease rates for new deliveries of both models are also similar. IBA noted this gives the E195-E2 a higher lease rate factor. The report states, "Lease Rates for the E195-E2 and A220-300 are on par."
Engine Reliability Challenges
Both aircraft families have been impacted by reliability issues with their Pratt & Whitney geared turbofan engines. The A220 uses the PW1500G engine, while the E-Jet E2 uses the closely related PW1900G.
IBA reported that 23% of PW1500G and PW1900G-powered Airbus A220 and Embraer E2 series aircraft were inactive at the time of its analysis. Among A220 operators, Air France was hardest hit with 27% of its fleet grounded, while airBaltic had 21% grounded. For the E2 series, Porter Airlines experienced 12% groundings and Linhas Aéreas had 16%.
Competitive Landscape and Airline Choice
Despite the A220's larger overall order book, the Embraer E195-E2 has won several recent campaigns against it. Airlines like LATAM, Finnair, SAS, Porter, and Avelo have chosen the Embraer jet.
Airlines often stick with a model they already operate to maintain fleet commonality. The choice between the two often depends on network strategy. The E195-E2 tends to win on shorter, thinner routes where its lower trip cost and precise capacity are advantages. The A220-300, with its higher capacity and longer range, is favored for thicker, longer routes. With market values so close, the final decision frequently hinges on these operational economics rather than headline aircraft prices.
