El Al Israel Airlines (LY, Tel Aviv Ben Gurion) says it has signed an agreement with Boeing (BOE, Washington National) for the purchase of twenty B737 MAX with options for up to 11 more.

The carrier said in a statement the firm order jets will deliver between 2028 and 2031 while those optioned, if firmed, can deliver between 2030 and 2032. However, El Al says it will consider bringing forward the MAX's service entry to as early as 2027 through leases but only once its optioned aircraft have been exercised.

The incoming MAX, whose variant was not disclosed, will be used to both replace El Al's current fleet of eighteen B737-800s and eight B737-900ERs, as well as grow its narrowbody fleet. Financing may come via loans and/or company resources.

El Al said it has "partial flexibility" to postpone the acceptance dates of some of the aircraft as well as conversion rights to other Boeing models. Also, it has the right to cancel the contract with respect to any aircraft whose date of receipt is delayed beyond a certain period of time according to the conditions stipulated in the agreement. The estimated purchase cost of the purchased aircraft, as of their future delivery dates, including replacement engines as well as spare parts inventory, is expected to be approximately USD1.5 billion dollars.

El Al's Boeing order book also entails four more B787-9s with options for six more.