Low-cost carrier Air Arabia has placed a firm order with Airbus for 120 aircraft comprising 73 A320neos, 27 A321neos and 20 A321XLRs.

The total book value of the deal at list prices is more than $14bn.

The new single-class cabin aircraft will expand the carrier’s existing fleet by three-fold and is line with its expansion strategy.

Airbus will start delivering the aircraft in 2024. However, the airline has yet to select an engine for the new fleet.

Air Arabia, which operates only Airbus planes, has a fleet of 54 A320 family aircraft, including the A321LR.

It is set to take delivery of three additional A321LRs next year.

Air Arabia Group chief executive officer Adel Al Ali said: “Air Arabia’s fleet growth strategy has always been driven by commercial demand and we are glad to announce today one of the region’s largest single-aisle orders with Airbus to support our growth plans.

“This new milestone underpins not only our solid financial fundamentals but also the strength of our multi-hub growth strategy that we have adopted over the years while remaining focused on efficiency, performance and passenger experience.”

The A320neo family comprises the A319neo, A320neo, and A321neo. The aircraft provide at least a 20% reduction in fuel burn and a 50% decrease in low noise levels compared with the previous generation.

Airbus’ Xtra Long Range aircraft has a range of up to 4,700nm and offers 30% reduced lower fuel consumption per seat. It is expected to enter service in 2023.

The aircraft manufacturer received more than 7,000 firm orders of the A320neo family from more than 110 customers as at the end of October.

Airbus chief commercial officer Christian Scherer said: “We are delighted to expand our partnership with Air Arabia, this is a great endorsement for the A320neo family, which will allow the airline to tap into new markets. We are committed to supporting the fast expansion of Air Arabia and the region.”