Jet2 announced the order of 35 new Airbus A320 neo aircraft with the ability to extend to up to 71 aircraft.

The deal is approximately worth $3.9 billion, with the deal extending to $8 billion for up to 71 aircraft. The company stated it had negotiated significant discounts from the initial price.

The agreement expands upon Jet2’s prior agreement to purchase 36 A321 neo aircraft, which was announced in 2021. As a result, Jet2 now has a total of 98 firm-ordered aircraft, which could extend to 146 aircraft.

The company said it will retain flexibility in determining the most advantageous method of financing the aircraft, which will be through a combination of internal resources and debt.

“We are delighted to build on our existing relationship with Airbus and to have placed this additional aircraft order which provides the Company with certainty of supply well into the next decade,” said Executive Chairman Phillip Meeson.

Jet2 shares have tumbled 33% in 2022 as the travel industry has been impacted by economic headwinds and a surge in oil prices.

However, recent updates from IAG and EasyJet have pointed towards travel demand remaining strong across the market.

In addition, Jet2 stated its order reflected its confidence in “a much-loved product” which the company feel can continue to grow.