Boeing has won an order from Air Canada for 737 MAX aircraft worth $6.5 billion.
The new generation 737s will replace the carrier’s current fleet of Airbus narrow-body aircraft.
The new 737s will help it cut fuel and maintenance costs on a per-seat basis by more than 20%.
Air Canada’s order includes options and rights to purchase 48 additional Boeings.
The airline’s chief executive Calin Rovinescu said: “Renewal of our North American narrow-body fleet with more fuel efficient aircraft is a key element of our ongoing cost transformation programme.”
The airline said it was also evaluating the potential replacement of its Embraer E190 fleet with “more cost efficient, larger narrow-body aircraft that are better suited to its current and future network strategy”.