Boeing and Airbus both publish list prices for their aircraft, providing a clear indication of how each model is positioned in the market, even though airlines almost always negotiate substantial discounts. These list prices can vary significantly between different variants, but for most modern commercial aircraft, they are often well in excess of $100 million.

In this article, we will take a closer look at the list prices of the popular Boeing 737 MAX and Airbus A320neo families, and explore why the 737 MAX often carries a higher price tag. We will also look at the history of each aircraft and how they’ve shaped the landscape of commercial aviation.

How Much Does Each Aircraft Cost?

From publicly available archives, Airbus’ most recently quoted list price for the A320neo is $110.6 million, reflecting its role as a highly efficient and widely adopted workhorse in the commercial narrowbody aircraft market. Its strong fuel savings and flexible cabin layout make it one of the most popular choices for airlines worldwide, both low-cost carriers and legacy airlines.

Boeing’s competing model, the 737 MAX 8, is priced slightly higher at $117.0 million, according to data from Business Insider. The US manufacturer positions the MAX 8 as offering strong performance, longer range, and a slightly higher passenger capacity, all contributing to its elevated price tag. Meanwhile, at the top end of the MAX family, the 737 MAX 10 costs $134.9 million, making it the most expensive variant. Let’s take a look at some of the reasons why the 737 MAX costs more than the A320neo.

Differences In Production Costs

Although the Airbus A320neo and the Boeing 737 MAX are often labeled simply as re-engined versions of earlier aircraft, the underlying engineering work required for each was very different. Airbus designed the original A320 in the 1980s with a relatively modern airframe that could more easily accommodate future engine upgrades.

When Airbus introduced the A320neo program, the main changes focused on the aircraft’s new Pratt & Whitney or CFM LEAP engines, minor aerodynamic improvements, updated technology, and some structural reinforcements. The aircraft’s original design already had adequate ground clearance and structural flexibility for these alterations, which helped reduce the complexity and cost of the upgrade.

Boeing, on the other hand, had to modernize an aircraft that dated back to the late 1960s. The 737 sits much lower to the ground, which made integrating the larger CFM LEAP-1B engines a significant engineering challenge. The manufacturer had to reposition and reshape parts of the aircraft, adjust the landing gear, and rework parts of the flight control system to ensure consistent handling.

All of this required extensive testing, simulation, and certification work. Additional costs were also introduced during the recertification process following the grounding of the 737 MAX, which required further design changes, software updates, and regulatory oversight.

Boeing’s Historical Pricing Strategy

Boeing and Airbus both publish list prices that rarely reflect what airlines actually pay, but the way each manufacturer uses these price tags differs. Boeing has often adopted a strategy of setting slightly higher list prices in order to begin negotiations at a higher starting point. In the commercial aircraft industry, large airlines routinely secure discounts ranging from 40% to 60%, depending on the order size, delivery timing, and aircraft availability.

By starting with a higher list price, Boeing creates space to offer heavy discounts that appear attractive to buyers while still protecting margins. This approach is also, in part, a marketing strategy, as publicly higher list prices can signal confidence in the product’s capabilities or market demand.

Particularly in the years before the Boeing 737 MAX was grounded, the aircraft was in high demand, and Boeing was able to maintain high list prices because airlines urgently needed narrowbody aircraft, and delivery slots were limited. With this in mind, aircraft list prices do not simply reflect production cost. Rather, they are also shaped by supply and demand, competition, and the bargaining power of the airline customer.

Competitive Positioning

Airbus and Boeing compete intensely in the narrowbody aircraft market, but they approach their product families with slightly different philosophies. Airbus has long positioned the A320neo family as an aircraft optimized for efficiency, lower operating costs, and cabin comfort, emphasizing its wider cabin and slightly better fuel burn in typical flight conditions. This branding aligns with Airbus’s strategy of appealing to airlines that prioritize cost per seat, reliability, and predictable economics.

The A320neo is marketed as an evolution of an already efficient aircraft, which allows Airbus to keep its pricing competitive. By contrast, Boeing historically tried to keep pricing somewhat above Airbus to reinforce the idea that the 737 MAX had superior performance or operational advantages, such as a slightly longer range, higher maximum take-off weight, or greater passenger capacity.

This positioning allows Boeing to justify a higher price tag, signaling that the 737 MAX sits at the upper end of what a narrowbody aircraft can deliver. However, in reality, the operating economics between the two aircraft are extremely close.

Another aspect of competitive positioning is the perception of value. Boeing often highlights the 737’s long operational history, pilot familiarity, and widespread global support network to contribute to the aircraft’s brand and help the manufacturer defend its list prices. Aircraft manufacturers can also use list prices as a tool to frame negotiations, with a higher list price giving the impression that the aircraft belongs in a higher value bracket, even if the final discounted sales price is much lower.

All About The Boeing 737 MAX

The Boeing 737 MAX is the latest generation of Boeing’s best-selling narrowbody family, designed to offer better fuel efficiency and updated technology compared to its predecessor, the 737 Next Generation series. The first variant to enter service, the 737 MAX 8, was delivered to Malindo Air in May 2017, marking the beginning of what the US manufacturer expected to be a long and successful production run.

Early operators praised the aircraft’s improved range and reduced fuel burn, thanks largely to the new CFM LEAP-1B engines and aerodynamic upgrades. However, the Boeing 737 MAX program quickly became defined by two tragic accidents. Lion Air Flight 610, operated by a 737 MAX 8, crashed in October 2018, followed by Ethiopian Airlines Flight 302 in March 2019. Investigations revealed issues with the aircraft’s MCAS flight-control system

As a result, aviation authorities around the world grounded the entire global 737 MAX fleet in March 2019, triggering the longest and most extensive grounding of a modern commercial aircraft. During the 20-month grounding, Boeing faced intense scrutiny over its design, certification processes, and training requirements. The manufacturer redesigned the 737 MAX’s flight control system and implemented new pilot training standards.

Regulators then recertified the aircraft beginning in late 2020, with the first commercial flights resuming shortly afterward. Since returning to service, the Boeing 737 MAX has gradually rebuilt its reputation, accumulating millions of safe flight hours. Airlines around the world continue to place large orders, and the MAX remains central to Boeing’s future in the competitive narrowbody aircraft market.

Today, Southwest Airlines is by far the largest operator of the Boeing 737 MAX. The latest data from ch-aviation shows that the low-cost carrier has a total of 273 737 MAX 8s in its fleet, with a further 196 737 MAX 8s and 314 737 MAX 7s on order. United Airlines is the second-largest US operator of the 737 MAX, followed by Alaska Airlines and American Airlines.

A Brief History Of The Airbus A320neo

The A320neo is the latest evolution of Airbus’s hugely successful A320 family, designed to deliver better fuel efficiency, lower emissions, and quieter operations. The aircraft made its first commercial flight with Lufthansa in January 2016, marking the start of a rapid global rollout. Powered by either Pratt & Whitney PW1100G-JM engines or CFM LEAP-1A engines, the A320neo offers up to 20% improved fuel burn compared to the earlier A320 series.

Airbus also introduced several cabin improvements with the A320neo, including larger overhead lockers, improved LED lighting, and options for the popular Airspace cabin layout, which allowed airlines to boost passenger comfort while optimizing seating layouts. The A320neo’s wider fuselage, a long-standing advantage of the A320 family, also appeals to carriers looking to create a more spacious cabin environment for their passengers.

The Airbus A320neo has quickly become one of the world’s top-selling aircraft, with hundreds of operators placing orders as they modernize their fleets. Its reliability, strong performance, and efficiency have helped the A320neo family become a backbone of major carriers around the world, including IndiGo, China Eastern Airlines, and Spirit Airlines. The world’s largest operators of the A320neo are detailed in the table above.