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Virgin America has agreed to buy ten new A321neo aircraft from Airbus to reduce operating costs and increase revenue.

The A321neo consumes 20% less fuel and are more carbon efficient than the airline’s existing fleet.

A321neo is equipped with Airbus’ fuel-saving Sharklet wingtip devices and CFM’s LEAP-1A engine.

Deliveries of the new A321neos are scheduled in the first quarter of 2017 and will continue through the third quarter of 2018.

Virgin America also signed a deal with GE Capital Aviation Services (GECAS), the commercial aircraft leasing and financing wing of GE, to lease the A321neo planes.

Virgin America president David Cush said: "As Virgin America continues to grow its network, there is no question the Airbus A321neo is the right aircraft for us, and we were pleased to work with GECAS to make today possible.

"Not only will these aircraft allow us to further reduce our unit costs and improve our revenue position, they demonstrate our continued commitment to reducing carbon emissions and creating an even more sustainable airline."

"The A321neo consumes 20% less fuel and are more carbon efficient than the airline’s existing fleet."

The A321neo will be configured to the requirements of Virgin America. Each of the aircraft will have 185 seats, which is 24% more than the airline’s other A320 aircraft.

The A321neo has a similar configuration and 95% airframe commonality with other aircraft in the Airbus A320 family, a feature that will easily fit into Virgin America’s current fleet of A320s and A319s.

With the single fleet type operation, the airlines will be able to reduce costs and resolve other operational issues.

Virgin Group founder Sir Richard Branson said: "I am proud to say that Virgin America already has one of the most fuel efficient fleets in the US industry, and this announcement only builds on that.

"At the heart of each Virgin company, including Virgin America, is the idea that great business performance and innovation can and must go hand-in-hand with a drive to make things better for the planet and its people.

"This aircraft order is a good example of that spirit in action."

Virgin America currently operates 58 Airbus A320 family aircraft, including A319 and A320. By next year, the airline will receive five more A320ceos, increasing its total fleet to 63 aircraft, prior to the delivery of the new A321neos in 2017.

Image: Virgin America to buy ten Airbus A321neos. Photo: courtesy of Virgin America.