Icelandic carrier Icelandair said on Thursday it would buy 12 Boeing 737 Max aircraft for a list price of $1.2 billion (922,000 euros), with purchase rights for an additional 12.
"The commitment is for eight 737 Max 8 aircraft for 153 passengers ... and four 737 MAX 9 aircraft which hold 172 passengers," the company said in a statement.
Boeing will take the new aircraft into service in 2017 and the first delivery is scheduled for the first half of 2018.
Icelandair did not disclose the value of the deal.
"The 737 Max can reach destinations on both sides of the Atlantic and gives Icelandair new options for added frequency and destinations, especially in winter to even out seasonality," it said.
The airline plans to fund the acquisition partly by internal resources and partly by lending from banks.
"The company is in discussions with the Export-Import Bank of the US about possible financing support," it said.
The Export-Import bank is a US institution that helps foreign buyers of American goods, with almost half of its financing going to aircraft sold by Boeing.
Icelandair's profit rose 38 percent in the first nine months of the year to $52.5 million (40.4 million euros).