Aerolíneas Argentinas has secured lease agreements with Aviation Capital Group (ACG) for six Boeing 737-10 aircraft, marking a critical step in the carrier’s largest fleet modernization effort in a decade.

Announced on July 23, 2026, at the Farnborough International Airshow, the transaction is part of a broader 20-aircraft renewal program scheduled for the 2027-2031 timeframe. According to a press release from ACG, deliveries of the Boeing 737-10s from the lessor’s orderbook will commence in 2028, providing the Argentine flag carrier with increased capacity for high-demand domestic and regional routes across South America.

Comprehensive Fleet Modernization Strategy

The ACG agreement fits into a larger procurement strategy formalized at the Farnborough event. According to reporting by Infobae and La Nación, the airline’s 2027-2031 plan encompasses 20 new aircraft, representing a renewal of 25 percent of its total fleet and 60 percent of its long-haul fleet.

The overall 20-aircraft plan includes six Airbus A330neos, eight Boeing 737-10s, and six Boeing 737-8s. During the airshow, Aerolíneas Argentinas formalized lease agreements for 14 of these aircraft with lessors ACG and Avolon.

Fabián Lombardo, President and Chief Executive Officer of Aerolíneas Argentinas, stated that the agreement reflects a commitment to building a more modern, efficient, and sustainable fleet.

We are pleased to strengthen our relationship with ACG through this agreement for six Boeing 737-10 aircraft. These aircraft are a key part of our 2027-2031 fleet plan and will allow us to add capacity on high-demand domestic and regional routes, improve operating efficiency and continue offering a more competitive product to our passengers.

Financial Restructuring and Self-Financing

The airline’s leadership emphasized that the fleet renewal is entirely self-financed, a notable shift following its recent financial restructuring.

La Nación reported that Aerolíneas Argentinas achieved positive operating results of $56.6 million in 2024 and $120.7 million in 2025, as audited by KPMG. These figures have allowed the carrier to pursue this capital-intensive modernization without relying on state subsidies.

Capacity Expansion with the Boeing 737-10

The Boeing 737-10, the largest variant of the MAX family, will be deployed from the carrier’s primary hubs at Aeroparque Jorge Newbery (AEP) and Ezeiza International Airport (EZE) in Buenos Aires.

Thomas Baker, Chief Executive Officer and President of ACG, highlighted the operational benefits of the aircraft for the South American market.

We are delighted to expand our partnership with Aerolíneas Argentinas as it continues to strengthen its domestic and regional network. The 737-10 offers airlines vital additional capacity, improved fuel efficiency and enhanced profitability, making it well suited to high-demand routes.

AirPro News analysis

We view Aerolíneas Argentinas’ ability to self-finance a 20-aircraft renewal program as a strong indicator of the carrier’s stabilized financial footing following years of restructuring. By securing leases through established lessors like ACG and Avolon rather than direct manufacturer purchases, the airline mitigates upfront capital expenditure while securing near-term delivery slots starting in 2028. The selection of the Boeing 737-10 specifically addresses capacity constraints at slot-restricted airports like Aeroparque Jorge Newbery, allowing the airline to maximize passenger throughput on its most lucrative regional routes without increasing flight frequencies.

Sources: Aviation Capital Group

BermudAir has placed a firm order for 10 Airbus A220-300 aircraft, marking the carrier’s transition from regional jets to mainline single-aisle operations.

Announced on July 22, 2026, at the Farnborough International Airshow, the agreement represents the Bermuda-based airline’s first direct purchase from the European manufacturer. The order was initially logged in March 2026 under an undisclosed customer through BermudAir’s affiliated company, Odyssey.

Fleet transition and capacity growth

BermudAir currently operates a fleet of Embraer 175 and Embraer 190 aircraft. The introduction of the Airbus A220-300 will provide a significant capacity increase for the three-year-old airline. According to Airways Magazine, the A220-300 will be configured with 135 seats in a three-class layout, adding 39 seats compared to the airline’s current 96-seat Embraer 190s.

Deliveries are scheduled to begin in the fourth quarter of 2027, as reported by Aviation Week. Reuters notes that BermudAir plans to operate up to 20 Airbus A220 aircraft by 2030, eventually replacing its Embraer fleet entirely.

BermudAir Founder and Chief Executive Officer Adam Scott detailed the economic rationale for the upgauge in an interview with Airways Magazine, noting that the airline was previously leaving passengers and revenue behind on maturing routes.

“We’ve evolved from the E175 to the E190, from 76 seats to 96 seats. The A220 essentially has the same operating cost as the 190, but you get this extra capacity,” Scott said.

Network expansion across the Americas

The 3,600-nautical-mile range of the A220-300 will enable BermudAir to expand its footprint beyond its current North American gateways. The airline is actively growing its network to include destinations in the Caribbean and Central America, such as Belize, Turks and Caicos, Guatemala City, and Anguilla. Reuters reports the carrier plans to more than double its current 11 routes by the end of 2026.

In a press release issued by Airbus, Scott stated that the aircraft’s range, operating economics, and performance at constrained airports will allow the carrier to connect more communities with direct service. The new fleet will also feature XL overhead bins, which Airways Magazine reports will provide a 20 percent increase in carry-on volume.

Airbus Executive Vice President of Sales for Commercial Aircraft Benoît de Saint-Exupéry added that the agreement introduces the A220 to a distinct operational environment in the Atlantic and Caribbean, validating the aircraft’s role in targeted regional development.

AirPro News analysis

BermudAir’s shift to the Airbus A220-300 highlights a broader industry trend of regional carriers upgauging to small narrowbody aircraft to maximize slot utility and route profitability. By selecting the A220, BermudAir secures a platform that offers mainline passenger experience metrics while maintaining trip costs comparable to large regional jets. We view this order as a critical step in BermudAir’s strategy to establish a dominant hub-and-spoke model in the Atlantic, leveraging Bermuda’s geographic position to capture premium leisure traffic between North America and the Caribbean.

Sources: Airbus

Abra Group has finalized an agreement with CFM International for 100 LEAP-1A engines to power 50 Airbus A320neo family aircraft for its Avianca subsidiary, cementing the holding company’s status as the largest operator of CFM engines in Latin America.

Announced on July 21, 2026, at the Farnborough International Airshow in England, the deal includes spare engines and a comprehensive long-term services package. According to a press release from GE Aerospace, the maintenance agreement covers both Avianca’s Airbus A320neo family fleet and the Boeing 737 MAX aircraft operated by Brazilian sister airline GOL. CFM International is a 50/50 joint venture between GE Aerospace and Safran Aircraft Engines.

Fleet expansion and engine allocation

The newly ordered LEAP-1A engines will be installed on 50 previously unallocated Airbus A320neo family aircraft within Avianca’s existing order book. Following this allocation, Avianca retains a backlog of 134 Airbus A320neo family jets awaiting engine selection.

Once all in-service and backlog aircraft are delivered, Abra Group’s combined brands will operate a fleet of more than 650 LEAP-powered aircraft. The group also currently operates 176 older-generation aircraft powered by CFM56 engines across the Avianca and GOL networks.

Adrian Neuhauser, CEO of Abra Group, stated that the agreements drive reliability, fuel efficiency, and cost predictability across the Airlines. He noted the engine selection supports a broader strategy to build a competitive aviation platform across the Latin American market.

Maintenance strategy and regional growth

The inclusion of a long-term services agreement ensures maintenance support for the narrowbody fleets of both Avianca and GOL, providing the holding company with unified engine support across two different aircraft types.

“These agreements demonstrate the value operators place in CFM’s products and services,” said Gaël Méheust, President and CEO of CFM International. “From new LEAP powered aircraft entering service to comprehensive support for fleets already in operation, we remain committed to helping our customers achieve high asset utilization, reliability, and operational efficiency.”

The engine manufacturer noted that it has delivered more than 10,000 LEAP engines to the global commercial aviation industry to date.

Regional connectivity strategy

The CFM International engine order aligns with a broader fleet and network expansion strategy executed by Abra Group during the Farnborough Airshow. On July 21, 2026, the holding company also announced an agreement to purchase up to 45 Embraer E195-E2 aircraft, including 20 firm Orders, to increase operational flexibility.

This fleet expansion follows a July 14, 2026, strategic partnership established between Abra Group and Etihad Airways aimed at strengthening connectivity between Latin America, the Middle East, and other global markets.

AirPro News analysis

We view Abra Group’s decision to secure a unified long-term services package for both Avianca’s Airbus A320neo family and GOL’s Boeing 737 MAX fleets as a clear demonstration of the holding company’s structural synergies. By leveraging the combined scale of its two primary carriers, Abra Group is extracting maximum value from CFM International across competing airframes. The dual announcement of the LEAP-1A order and the Embraer E195-E2 acquisition indicates a strategic layering of the fleet, utilizing the E2 for thinner regional routes while relying on the A320neo and 737 MAX families for high-density trunk operations.

Sources: GE Aerospace