Why airlines continue to pay 30% more for the Airbus A220 than the Embraer E195-E2


Why do airlines continue to pay 30% more for… Airbus A220 than your opponent Embraer E195-E2or them? This seems to be a common mistake with online comparisons reporting list prices rather than market prices. List prices are primarily marketing metrics and a starting point for negotiations. They’re a bit like a company advertising a vacation “valued at $10,000” based on the full retail price of airfare, hotels, and meals. The company may have preferential agreements and volume discounts, which means its actual cost is much lower. A solo traveler may also be able to negotiate or find the same holiday for significantly less.

In reality, the larger A220-300 appears to have a slight premium compared to the E195-E2, but judging by market rates for new aircraft, this figure is closer to 5% than 30%. Here’s what you need to know about how the A220-300 and E195-E2 compete, their order books and how they are valued in the market. The article highlights why list prices are so misleading and often more of a distraction than a benefit.

Airbus A220-300 airliner

Why airlines continue to pay 30% more for the Airbus A220 than the Embraer E195-E2 Credit: Shutterstock

The Airbus A220 is the world’s most popular regional airliner on the market, with over 1,000 units sold/ordered. It was developed by Bombardier as the CSeries and later acquired by Airbus in 2018.. As a clean-sheet aircraft, it offers the largest windows in the Airbus range and is touted to offer a 25% improvement in efficiency over the aircraft it replaces. The aircraft seats five people per row (one less than the six rows of the A320 and Boeing 737) and is currently operated by 25 companies worldwide.

The Airbus A220-200 comes in two variants: the A220-100 and the stretched A220-300, which compares better with the Embraer E195-E2. The A220-300 typically has 125–160 seats and a range of approximately 3,400 nautical miles. Airbus advertises:Operating costs per seat are 25% lower than previous generation aircraft, making the A220 an efficient, versatile and profitable aircraft for operators.

All A220s are powered exclusively by Pratt & Whitney PW1500G turbofan engines. As discussed below, the fuel-efficient PW1500G geared turbofan engine is one of the aircraft’s major advantages, but engine problems have also become a major source of headaches for the program. Fortunately for the program, it looks like the problems will soon be resolved. Last year the number of groundings was very high, but now efforts have brought down the number of engine related groundings for the A220 to just 2-3%.

Embraer E195-E2

Azul Embraer E195-1 Credit: Shutterstock

Embraer’s newest aircraft, the E195-E2, entered service in 2019. It is notable for being the largest aircraft certified to operate at London City Airport (operating there since 2023). This is the latest variant of the Embraer E-Jet E2 family, which in turn is a further development of the original E-Jet family. E-Jet E2 aircraft are powered by a Pratt & Whitney PW1900G turbofan engine.closely related to the A220 engine.

Embraer says its E-Jets E2 offer 29% better fuel efficiency per seat and 19% lower fuel consumption compared to previous generation aircraft. The company also claims that the aircraft is the quietest in its class (up to 68% reduction in noise levels) and has a 90% increase in baggage capacity compared to the first generation E-Jet.

Airbus vs Embraer (by Airbus, Embraer, IBA, etc.)

Airbus A220-300

Embraer E195-E2

Joined the service

2016

2019

Maximum number of seats

160

146

Seats in a row

5

4

Range

3400 nautical miles

3000 nautical miles (updated from 2400 nautical miles in 2024)

Ordered quantity

998

464

Frequently mentioned list prices

Approx. 91.5 million

$69 million

Market value (April 2025)

Approx. $40 million

Approx. $38 million

Rental rate (monthly)

Approx. US$300,000

Approx. US$300,000

The E-Jet family is a four-row regional airliner, which differentiates it from the A220-300. The E195-E2 typically has 120–146 seats, about 15–25 fewer than the A220-300, but has a significantly shorter range. Its maximum range is approximately 3,000 nautical miles (updated from 2,600 nautical miles in 2024), approximately 400 nautical miles less than the A220-300.

A220 has twice as many orders for E-Jet E2

Breeze Airways A220 in flight Credit: Shutterstock

The total order portfolio for the A220 family amounted to 1,106 units, of which the vast majority (998) are the extended A220-300, and the rest (108) are the shorter A220-100. Of these, 532 units have been delivered, while 574 remain in the portfolio. It is noteworthy that in May 2026 AirAsia places record order for 150 Airbus A220-300 aircraftand became the first customer of the 160-seat A220-300 configuration.

Since 2020, when the COVID-19 pandemic began, Airbus has increased deliveries from 38 in 2020 to 93 in 2025. Ironically, given that Canada is home to the A220 (CSeries) and a source of national pride for the country, its Porter Airlines is the world’s largest customer of the rival E195-E2 aircraft, with 75 aircraft on order.

In total, Embraer has delivered 175 E195-E2 aircraft and 38 E190-E2 aircraft, leaving a portfolio of 289 E195-E2 aircraft as well as a further 30 E190-E2 aircraft. Cumulative orders amount to 464 E195-E2 aircraft and 68 E190-E2 aircraft, for a total of 532 aircraft, or about half of the total A220 order book. The E-Jet E2 first entered service in 2018, two years after the A220, which entered service in 2016.

Market prices for A220-300 and E195 E2 are the same

An E195 E2 aircraft in the profit hunter livery comes in for landing. Credit: Shutterstock

In May 2026, AirAsia announced a firm agreement with Airbus worth approximately $19 billion at list prices for 150 A220-300 aircraft. This equates to an estimated program cost of about $127 million per aircraft, although this figure should not be interpreted as the list price of the aircraft itself, as such announcements may also include related services and support. The list price for these planes is typically around $91 million each. The E195-E2’s widely cited list price is around $69 million, although it’s unclear where those numbers come from.

NEW

Find out what other flight tracking systems are missing

Alarms, Holds, NOTAMs – signals in real time, without registration.

Open tracker

NEW

Find out what other flight tracking systems are missing

Alarms, Holds, NOTAMs – signals in real time, without registration.

Open tracker

But advertised list prices do not match market prices.. List prices are the prices advertised by aircraft manufacturers and are best understood as a starting point for negotiations. Airlines don’t typically pay these prices in the real world. Moreover, according to market data compiled by IBA, the actual market value of the A220-300 and E195-E2 may be approximately the same.

In April 2025, the IBA wrote: “As of January 2025, the market value of the A220-300 for new models is just over US$40 million, up 12.6% from January 2021. The E195-E2 is currently priced at around US$38 million, which is around US$4 million higher than the E190 variant… Lease rates for the E195-E2 and A220-300 are on par, averaging around US$300k per month for new deliveries, giving the E195-E2 a longer range.

Confusing similarities in prices and engines

Takeoff Breeze A220 Credit: Shutterstock

The IBA report states that the market value of the A220 is “just over 40 million dollars“And the E195-E2, costing about $38 million, is surprising. On paper, the planes are not directly comparable: the A220-300 seats more passengers, offers significantly greater range, benefits from integration into Airbus’s wider single-aisle ecosystem, and has the support of a much larger production program.

One possible explanation is that both aircraft were damaged by reliability problems with Pratt & Whitney geared turbofan engines. The disruption was particularly severe for some A220 operators. IBA reports this”Problems with the latest engines are affecting many airlines’ operations and fleet availability, with 23% of the Airbus A220 and Embraer E2 series aircraft powered by the PW1500G and PW1900G engines currently grounded.

IBA then adds: “Among PW1500G operators, airBaltic and Air France are the hardest hit, with 21% and 27% of their Airbus A220 fleets currently grounded respectively.The E-Jet E2 PW1900G fleet had smaller but still noticeable groundings, affecting Embraer E190-E2 and E195-E2 operators. Porter Airlines had 12% of landings and Linhas Aéreas had 16%.

Where the E195-E2 tended to win

KLM Cityhopper Embraer E195-E2 rules Credit: Shutterstock

While the A220’s order book may be double that of the Embraer E-Jet, there are still a number of cases where Embraer is preferred and superior to the A220. The E195-E2 has recently won several campaigns against the A220.including LATAM, Finnair, SAS, Porter, Avelo and some others. Airlines that already operate the E2 or A220 are incentivized to order more of the aircraft to maintain commonality.

But there are some patterns. Embraer routes tend to be shorter and thinner, so lower fare costs and accurate capacity are more important. Other factors include acquisition price, local support (e.g. in Latin America) and delivery times (Embraer may fulfill orders earlier). Conversely, the A220-300, with its greater capacity and range, is preferred on thicker, longer routes.

Depending on the mission, the A220 may offer lower cost per seat mile and lower fuel consumption per passenger, but this could work out in the E2’s favor, depending on load factor and mission. Ultimately, the E195-E2 and A220-300 are less direct competitors than their neighboring products. They overlap in the 120-150 seat market, but each is optimized for a different part of that segment. Because fair market values ​​and lease rates are now significantly closer, airline choices are often determined more by network strategy and fleet economics than by overall aircraft prices.

Leave a Reply

Your email address will not be published. Required fields are marked *