TAIPEI (Taiwan News) — Tigerair Taiwan unveiled on Wednesday a NT$40 billion (US$1.28 billion) upgrade to expand capacity and modernize its fleet.

The budget carrier said its board approved a third-generation fleet upgrade that includes leasing 11 aircraft and purchasing four more, per UDN. It said the expansion will keep its fleet young, with the average aircraft age projected to drop to 3.1 years by 2028.

Each A321neo will seat 233 passengers, compared with 180 on today’s A320s. Tigerair Taiwan said improved fuel efficiency will lower operating cost per seat by 11.2% versus the A320neo.

With annual load factors already above 85% and some Japan routes nearing 90%, the carrier expects the larger jets to lift both capacity and profitability. Once deliveries are complete, it will operate 15 A320neos and 15 A321neos for 30 in total.

The 11 leased A321neos will be delivered by 2031, and the four purchased jets will arrive by 2035. Tigerair Taiwan said retaining purchase options for more aircraft gives it flexibility in a fiercely competitive market.