FlyDubai has made a major strategic shift by ordering 150 Airbus A321neo aircraft, marking the first time the budget carrier will expand its fleet beyond Boeing. The memorandum of understanding, announced Tuesday at the Dubai Airshow, is valued at about USD 24 billion at list prices and includes purchase rights for another 100 jets.

The order represents a significant expansion for FlyDubai, which currently operates 95 aircraft exclusively from Boeing’s 737 family. The A321neo, a single-aisle mid-range jet, directly competes with Boeing’s 737 models and will give the carrier new flexibility as it grows its regional and medium-haul network.

FlyDubai and Airbus shared few details about the agreement, but officials described it as central to the airline’s long-term fleet diversification strategy. Sheikh Ahmed bin Saeed Al Maktoum, chairman of FlyDubai and Emirates, said the addition of Airbus aircraft would strengthen future expansion as Dubai prepares to build a massive five-runway airport at Dubai World Central.

Airbus executives praised FlyDubai for balancing low-cost operations with an increasingly strong premium offering.

The order follows FlyDubai’s 2023 purchase of 30 Boeing 787-9 Dreamliners, which will introduce wide-body capability to its fleet for the first time.

Also at the airshow, Abu Dhabi-based Etihad Airways confirmed an order for 16 Airbus aircraft, including A330-900s, A350-1000s and A350 freighters, supporting the airline’s financial rebound after posting a record USD 476 million profit in 2024.

On Monday, Emirates ordered 65 Boeing 777-9 jets worth USD 38 billion despite ongoing program delays. Emirates President Tim Clark acknowledged the uncertainties but said the scale of the purchase could accelerate Boeing’s delivery timeline.

Both Emirates and FlyDubai are preparing for rapid growth as Dubai advances a USD 35 billion plan to transform Al Maktoum International Airport into one of the world’s largest aviation hubs.